Both the late 1990s and the more recent period illustrate the central role of the spending response in determining the macroeconomic effects of a change in productivity growth, although (as I have  7  Kohn (2003) explores some of the issues of this section in greater detail.
In this statement, I will explain the rationale behind this assessment in greater detail. I will begin by summarising the current outlook for the economy and the associated macroeconomic risks. I will update you on some welcome improvements relating to the key vulnerabilities in the domestic financial system that were highlighted in last year’s Report.