This “disconnect” between the financial and the business cycle creates a dilemma to traditional macro-economic policy and especially to monetary policy. The main remit of monetary policy refers to the relevant variables of the business cycle: inflation in the market of goods and services and the level of real economic activity.
Domestic conditions •  GDP growth: After contracting in 2007 (-6.6 percent), our economy is undergoing some recovery in 2008 (1.7 percent). Forecasts for 2009 and 2010 are 1.1 percent and 1.6 percent, respectively. These forecasts were released by the Macroeconomic Policy Committee in April 2008. These growth rates are too low and insufficient to generate sufficient employment opportunities.