The assessment largely takes the form of the Financial Stability Review. I turn now to the Financial Stability Review and highlight some of the key issues that the March 2011 edition addresses. First, the Review indicates that during the second half of 2010 global macrofinancial conditions improved broadly, although pockets of vulnerability and risk remain and significant policy challenges still need to be addressed.
Yet, I and many other economists anticipate that inflation will gradually move toward the target as the transitory effects of lower oil prices fade. In summary, I believe the economy has returned to a more normal footing, and as such, I believe that monetary policy should follow suit.