In fact, the opposite is more likely to be true: lower rates tend to promote reforms, since they lead to a better macroeconomic environment.13 This is especially useful for countries without the fiscal space to support demand.
The challenge of pairing reforms with inclusiveness But we have also learned something else from the crisis: highlighting the benefits of reforms in terms of growth is not enough to make them widely acceptable to the public. We also need to take into account the inclusiveness of economic policies.