As Bianchi and Melosi3 show in their very interesting paper referring to the pandemic crisis period and presented at the Jackson Hole Economic Symposium this summer, monetary and fiscal policy should work hand in hand, since price stability ultimately requires fiscal backing and debt-stabilisation policies.
Nonetheless, the degree of slack in the economy overall does not seem large in comparison with the apparent size of the expansion in resources sector income and investment now under way. With that general outlook, it follows that macroeconomic policies must be configured in the expectation that there will need to be some degree of restraint.