This additional stimulus to economic activity is consistent with keeping the core rate of inflation close to the 2 per cent midpoint of the 1 to 3 per cent inflation-control target range. As for total CPI inflation, we still expect it to move down to about 2 per cent in the second half of 2001, assuming world oil prices remain at about current levels.
If untreated, the cyclical becomes structural. Persistent weakness in the labor markets, in effect, permanently disqualifies more workers from a place in the labor force. The natural rate of unemployment moves higher and potential GDP falls. And substantial harm is done to our well-being, threatening to demoralize our populace who knows better. But, this need not be so.