If I do my job well, I’ll leave you with a sense of how the Bank weighs the known and the unknown when setting monetary policy. What we do know Let’s start with what we do know about our current situation.
Most of us acknowledge that it all began with a period of exceptionally strong global economic growth in the mid-2000s, some creative financial engineering, an explosion of leverage and a speculative bubble that touched a lot of markets. The bubble burst when the U.S. housing market rolled over and some significant financial vulnerabilities were laid bare.