When I assumed office just over 15 months ago, I faced the following economic conditions: •  Sharp contraction in economic growth  •  Soaring food price inflation  •  Declining external reserve position  •  Weak business confidence  Today: •  Economic growth is slow but steady  •  Food price inflation is down to within single digits  •  External reserves have stabilized  •  Business confidence is returning, albeit slowly  Therefore is not all doom and gloom.
More recently Stiglitz posed another question highlighting one important flaw of models: why does the economy not quickly return to full employment, as one would have expected in an equilibrium model? Why do we persist in using models with such strongly counterfactual dynamics?