What we have been struck by, both in industry visits and in our analysis of the data, is how actively businesses have been responding to the challenges posed by a rapidly appreciating dollar.
However, since both are essential preconditions for sustained economic growth, it is not at all meaningful to consider which of the two we should choose. What is crucially important is to prevent the economy from getting into such a tradeoff in the first place; for that reason, fiscal sustainability itself is an essential precondition for the proper functioning of a central bank.