The current state of the financial system Factors promoting greater structural resilience Returning to the current state of vulnerabilities, it is well known that a range of structural improvements mandated by the Congress and undertaken by the Federal Reserve and other regulatory agencies have strengthened financial stability over the past five years.
If the potential growth rate of the economy is, say, 3½ per cent per annum and the desired rate of inflation is 2½ per cent, then the long-term trend rate of growth of nominal GDP will be about 6 per cent per annum.