This improved ability has been facilitated further by the increasing willingness of our workers to embrace innovation more generally. It is reasonable to surmise that, not only have such measures contributed significantly to the long-term growth potential of the economy this past decade, they also have enhanced its short-term resistance to recession.
“The financial system should neither cause nor amplify a downturn in overall economic activity, and should perform its functions even in periods of stress.” Our definition of “financial stability” may have sounded abstract up until now – but the pandemic has shown in very tangible terms how important a functioning financial system is for the economy.