The output gap (figure 5) fell along with asset prices before the recession, but the decline was from an unsustainably overheated level. And investment (figure 5) stayed relatively strong compared with other recessions. Despite this episode being associated with rather severe declines in equity and commercial real estate prices, no evidence of an investment overhang appears in this comparison.
Sometimes they are accused of communicating in a secret code with the real meaning known only to other central bankers. So how do we undertake important policy decisions in the Reserve Bank and how do we endeavour to communicate?