1 This argument has also been supported by Keneth Rogoff (1985) who advocated that the central bank should place larger weight on inflation stabilization, in order to increase the welfare of the society. Therefore, the competing goals of growth and price stability, which may seem to be at odds with each other, in fact boils down to a single objective i.e. price stability.
So while the short-term outlook is an optimistic one, there is general recognition that we cannot afford to be complacent. Securing a sustained recovery over the medium term requires stronger international cooperation. Allow me to highlight some of the initiatives in this regard.