A major overhaul of the Survey took place in 1986–87, following a conference held in Perugia in February 1985. Albert Ando, a close personal friend of many of us and for many years an invaluable consultant of the Bank, played a crucial role in that restructuring. Albert made two important points.
Higher interest rates over recent times would have meant we undershot our inflation and employment goals, have significant weaker activity, and a rising domestic exchange rate – until it was unsustainable. But there are natural limitations to what central banks can achieve with their tools, and if operating alone.