In relation to economic activity, tax increases are a cause for concern but tax cuts produce positive effects. However, if the economy deteriorates to the extent that achieving the 2 percent price stability target in the long term becomes difficult, I view it as necessary to strengthen monetary easing without delay. Thank you for your attention. 25
Before I take my seat, let me thank the following in making it possible to complete this study and making it available: 1. The Australian Government, especially the Department of Foreign Affairs & Trade (DFAT), for the funding assistance thru the UN Pacific Islands Financial Inclusion Program (PFIP). 2. The PFIP for their role in providing guidance and advice and support to the study.