The reasonable conclusion is that government has a role to play in economic growth, in collaboration with the private sector, but that it is the investment of the private sector that underpins expansion, year after year. Government support is especially important in the early development of new initiatives.
In such cases, countries have struggled with higher inflation, higher borrowing costs and eventually  10  As former Chairman Ben Bernanke once explained: “The key to explaining why price stability promotes stability in both output and employment is the realization that, when inflation itself is wellcontrolled, then the public’s expectations of inflation will also be low and stable.