Given that the problem resulted from massive distortions and imbalances that developed over the years, the only way to solve the problem was to wait patiently until the imbalances unwound. Once the storm had passed, the economy would return to equilibrium, an equilibrium, it is important to note, free from the previous distortions.
These projections are based on the assumptions that external price pressures will diminish over the projection horizon, in line with futures prices for oil and agricultural commodities, and that there will be no broad-based second-round effects on wages.