In part, this is a Reserve Bank responsibility, and involves our being quick to spot situations where demand looks likely, 18 to 24 months ahead, to exceed the economy’s sustainable capacity to deliver.
It would not only create a more stable environment for growth and prosperity; it would also allow us, as a central bank, to conduct our monetary policy in an environment of much greater certainty. In the end, the more developed the “E” in EMU, the better we can do our job on the “M” side.