Also, there are some risks relating to the extent of borrowing being undertaken by households, which has left many households with very high levels of debt. Before getting into these issues, let me briefly say why I think this topic is important, and why the Reserve Bank takes a close interest in the issue of saving and investment.
This is why a safety net to alleviate this pain will become even more important. In the COVID-19 era, I believe that it is worth considering whether monetary policy might be able to act as a sort of safety net by providing accommodative financial conditions, rather than as a means of directly promoting such reforms.