A striking feature is the sustained surplus position that has emerged in recent years. We know that lowfrequency factors such as demographics contribute to this pattern (in addition to the role played by fiscal policy) but it is useful to explore whether our monetary policy has also played a role.
For the economy, small businesses need adequate and affordable credit in order to form, grow, and succeed; otherwise they may underperform, slowing growth and employment. For many small business owners, personal and business finances are intertwined. A well-functioning housing finance market is vital for small business owners who may draw upon the equity in their homes to fund their businesses.