More recently, in 2005 and 2006 total means of payment grew in line with economic activity. Finally, in the last two years monetary growth was bellow nominal GDP, guaranteeing the balance between supply and demand for money. All of this is a proof of the commitment and action taken by the Central Bank towards monetary and financial stability in Argentina.
At least half of the 18 FOMC participants in their Summary of Economic Projections (SEP) submissions projected that these necessary threshold conditions for liftoff will be met by December 2022, and all participants but 1 project that these conditions will be met by December 2023.5 These projections are entirely consistent with the new monetary policy framework adopted unanimously by the Committee in August 2020.6 In the context of our new framework, as I have noted before, while the effective lower bound (ELB) can be a constraint on monetary policy, the ELB is not a constraint on fiscal policy, and appropriate monetary policy under our new framework, to me, must—and certainly can— incorporate this reality.