Ensuring the containment of the effects of this shock will require not only an incisive and appropriate response from monetary policy, but also the shouldering of responsibility on both sides of the labour market and the contribution of budgetary policy.
Slower growth is here now and has been for a while. It's surely no coincidence that the path back to budget balance is turning out to be a very long one. At present, very low nominal GDP growth looms large in subduing revenue growth, because of the terms of trade decline.