Nonetheless, a view has to be taken on the true nature of the slack in demand and supply-side shocks to inflation for timely use of counter cyclical policies. 26. We, in the Reserve Bank, therefore, constantly update our assessment of the economy based on incoming data and survey based forward looking information juxtaposed with modelbased estimates for policy formulation.
Conversely, technical progress creates powerful pressures to liberalise markets as it makes the maintenance of barriers more and more inefficient and expensive. The benefits and challenges of globalisation are inextricably linked. Above all, globalisation brings major benefits for everyone. The most important benefits are: greater efficiency through stronger competition, a better allocation of resources and, consequently, falling costs.