6  BIS central bankers’ speeches  Supply side policies comprise structural policies and mostly sectoral and microeconomic in nature; they include the construction of public infrastructure, incentives for private investment, competition and trade policies, and agricultural extension services.
As a government we need to improve supply side policies to strengthen economic growth over the medium to long term, in particular by improving the quality of public services, the cost and quality of public infrastructure and the business environment. Supply side and demand management policies are not alternatives; they complement each other and both are necessary for sound economic management.