Our task therefore becomes more difficult and complex as time slips by. Over the last five years, the Reserve Bank has therefore used the tools available to us to stabilize the situation. We have progressively raised interest rates in the last four years. We have tightened liquidity.
The science of monetary policy and the shorter-term projections Now let us take a brief look at the Federal Reserve's macroeconomic projections for 2007 through 2009. These projections are useful for understanding the Federal Reserve's nearterm policy strategy, and again, I would like to highlight how this strategy fulfills the dual mandate and embeds key implications of the modern science of monetary policy.