Whether enough has been done adequately to restore conditions for sustainable growth, it is too soon to know yet. But if not, it is a safe bet that more will be done before long, if the recent comments by the authorities in various countries are any guide. What then of the outlook for Australia?
Thus far most indicators have suggested that the economy has been slowing, after a period of excessively strong growth in demand that had pushed up inflation. Absent the sudden recent deterioration in the global outlook, I think we would in due course have looked back and seen that the slowing had been similar to that observed in 2001, albeit with differences by sector.