Besides supporting the assessment on the outlook for price stability, this analysis could be an indispensable ingredient of a monetary policy aiming at a higher symmetry of response to boom-bust cycles, reducing procyclicality and moral hazard in the financial sector.
The first is our strong institutional framework, including: the rule of law, respect for property rights, a well-functioning public administration and a well-established regulatory system. We  2  2  See Lowe P (2014), “Building on Strong Foundations”, Address to the Australian Business Economists Annual Dinner, Sydney, 25 November.