What about monetary policy in the future? In the Bank’s Monetary Policy Report Update last month, we said that the role of monetary policy is to facilitate adjustments by helping to sustain aggregate demand. What does this mean?
Asian economies provided approximately 40% of global growth in 2011 and their share in global exports was more than 30% in 2011. This, however, did not mean they were immune from the slowdown of the European economy. Weakness in Europe has impacted Chinese exports, and through the regional supply chain, exports and growth have been impacted broadly throughout Asia.