As we contemplate a decade that has not been particularly calm, with wave after wave of economic shocks – the financial crisis, our closest trading partner choosing to distance itself from its biggest market, the pandemic, Russia’s war and the energy crisis – we need to make sure we look through the surf and the spray and at the horizon and the rest of the sea.
As I said earlier, we know that we are already into major economic transitions and we need to manage them. Both monetary and fiscal policy have an important role to play in how the economy adjusts through both the nearterm challenges and those more fundamental transitions.