Some see the effort to develop rules as futile. They argue that in a world of sovereign states, it is very difficult to impose a set of binding rules which go beyond the realm of any one government.
This approach was visible in our August OCR decision when we cut the rate by 50 basis points. It was clear that providing more stimulus sooner held little risk of overshooting our objectives—whereas holding the OCR flat ran the risk of needing to provide significantly more stimulus later. We can also address uncertainty through our communication and forward guidance, which are broad-ranging.