even when liquidity is injected it is only financial institutions’ soundness indicators that are improved, via purchases of government bonds only, what is critical is how measures can be formulated to enable these improvements to be transmitted to the real sector so that the economy runs properly and growth is achieved.
Not only are living standards much higher, employment has grown rapidly and we have seen strong development in manufacturing, business and financial services sectors, helped by the fact that we have been hugely successful in attracting foreign investment. Clearly, the economic situation has changed significantly, but in terms of where we are starting from, the position is very different from the 1980s.