The higher export value added from nickel processing has stimulated growth from aggregate demand side and bolstered a healthier current account. Furthermore, the increased capital in the mining and industrial sectors generated by nickel downstreaming has expanded the potential output capacity from the aggregate supply side and supported sustainable growth.
In my judgment, if policies consistent with these principles are followed, then we will have eliminated much of the moral hazard associated with the federal safety net for depository institutions while simultaneously being able to achieve our goal of preserving financial stability.