Monetary policy does have an important role to play and we have the capacity to play that role if needed. In saying that, I also want to recognise that monetary policy is not the only option. There are certain downsides from relying just on monetary policy and there are limitations on what, realistically, can be achieved.
So, as a country, we should also be looking at other options to reduce unemployment. One option is for fiscal support, including through spending on infrastructure. This spending not only adds to demand in the economy, but it also adds to the economy’s productive capacity. So it works on both the demand and supply side.