This is one of our greatest challenges in the pursuit and maintenance of price and macroeconomic stability. Thus there is a need for adherence to the Government’s Medium Term Fiscal Strategy framework to ensure that Government expenditure is kept under control and does not fuel instability.
We live in a 24-hour news cycle that focuses a lot of time and energy on analyzing the tea leaves from the daily onslaught of new economic data at our disposal. Yet, I believe it is a mistake for policymakers to focus too intently on the most recent numbers to justify a policy decision.