One under-explored topic of great importance is what the effects of prolonged stagnation on the growth trend -- sometimes known as hysteresis -- exactly are.11 Reflection #6: Communication is absolutely necessary, extremely important, but really difficult The key to modern monetary policy is expectation management. The very idea of having a clearly defined inflation target is based on the importance of communication.
For a time, this did result in the economy growing at an above-average pace, but this has been followed by a few years where growth has averaged below trend as mining investment returned to more normal levels.