When the economy enters the mature stage, there are limits to the extent to which growth can be generated by the quantitative expansion of capital owing to restrictions on further inputs of labor. Growth is then led by the enhancement of productivity based on technological advances.
But that said, we know that policy makers will always do what they believe would be best for their own specific needs, sometimes without much concern for the impact of their actions on other jurisdictions. This brings to mind a higher policy consideration – the principle of “enlightened self-interest” as espoused by the Bank for International Settlements.