The Bank has repeated that while monetary policy can be supportive of growth in the shortterm, higher trend growth requires a range of economic reforms including faster public infrastructure spending, better quality education and more effective dispute resolution mechanisms in the labour market. It is not within the realm of monetary policy alone to deal with the myriad of challenges confronting the economy.
Wouldn’t it be wonderful if just like a multinational, the world would have a clear strategy? Well, not only does the world have such a strategy, we, increasingly, see many governments, business and investors taking steps to pursue it and to tackle these challenges. 1  But we also need to be realistic: we are a long way from achieving the goals.