These figures contrast with the much lower rates of increase occurring in major economies overseas where demand is much weaker and inflation targets – implicit or explicit – are, or are in danger of, being undershot. Before leaving the domestic economy, I will make a few remarks about the growth of credit.
Policy rates in the US reached one per cent in 2002, and were held around these levels for an extended period, longer than was probably necessary (Taylor, 2009; Yellen, 2009).