Hence, SMMEs are often subjected to fierce competition with scant opportunities to extract rents. This, by necessity brings out the best in them. Innovation Innovation is not the exclusive domain of small business as many forms and kinds of innovation require economies of scale, large investments in research and development, and the ability to bear out long periods to gestation and regulatory approval.
In other words, while countries with elevated public debt levels should focus on consistent consolidation of public finances, those with available fiscal space could use it to increase growth-enhancing public investment. In this way, one would enable a more balanced macroeconomic policy mix. Applying the already worn saying, monetary policy should indeed not be the only active player in town.