What has happened so far this year - although it took some time to clearly identify it - was the third-mentioned possibility - a transition to a set of conditions in line with a firming in the world economy and an easing in domestic pressures.
This was the most favourable outcome and the one most likely to result in a more balanced growth for the Australian economy. I outlined this in a speech I  BIS Review 35/2004  1  gave to Macquarie University in April and we spelled it out more fully in our quarterly Statement on Monetary Policy published last month.