owing to sluggish global demand and declines in oil and non-oil commodity prices. The import deflator is thus estimated to have declined in year-on-year terms over this period.
Some of this movement is the effect of the economy on the budget rather than actual measures taken, but discretionary budget measures have been quite substantial. In addition, US interest rates have fallen significantly, and are at their lowest levels in four decades. Contrary to what we hear in some quarters, macroeconomic policies are still effective.