We have opportunities for a more sustainable economic recovery form the ravages of COVID-19 by rebuilding our economies in a more environmentally sustainable manner. To build a more sustainable economy globally we are going to need all hands on the pump. Public and private sector knowledge and capital must be mobilised together. No one party can afford to tackle the challenge alone.
Since it is the distance from full employment that matters in terms of moving inflation in the Phillips curve, if that distance is underestimated inflation may remain subdued even as measured slack gets smaller.