While low inflation is a necessary condition for good economic performance, it is not sufficient by itself. Other factors are also crucial. Clearly, it is very important that we all continue to work to improve the structure of our economy and the skills of our labour force, and to ensure that our product and labour markets operate efficiently.
62 and Altavilla, C., Boucinha, M., Holton, S. and Ongena, S. (2021) “Credit supply and demand in unconventional times”, Journey of Money Credit and Banking, Vol. 53. 18. In detail, the constituent papers are: Gilchrist, S. and Zakrajšek, E. (2012) “Credit Spreads and Business Cycle Fluctuations”, American Economic Review, Vol.