With this in mind, it is easy to see good policymaking as akin to investing in the country’s wellbeing. As with any investment decision, getting the timing right requires mindfulness, vigilance, and flexibility, as economic conditions could shift at a moment’s notice. Prudence also requires policies to be grounded on a reasonable assessment of pertinent information on potential costs, benefits, and tradeoffs.
Clouds on the horizon Nevertheless, in spite of a generally favorable economic climate, there are a few clouds on the horizon that require us to be especially vigilant. There are two particularly key developments that could challenge the country’s position of relative strength. We intend to address these with timely and well-informed policy responses. One revolves around dealing with inflation and potential overheating.