We cannot steer demand precisely, especially in the short term. Therefore, we focus on creating the appropriate conditions for non-inflationary growth of demand in the medium term. With money supply growing at almost 5% and with real interest rates well below historical averages, monetary policy is delivering in practice what I have just explained in theory.
On this score, as I have remarked before, Australia has scope to use macroeconomic policy to support the economy  BIS Review 156/2008  3  in the weak part of the cycle.