First, through its words and (especially) its actions, the central bank must establish a strong commitment to keeping inflation low and stable. Second, subject to the condition that inflation be kept low and stable, and to the extent possible given our uncertainties about the structure of the economy and the effects of policy, monetary policy should strive to limit cyclical swings in resource utilization.
The absence of such policy action implies that we cannot expect financing to deliver as much as we would like. Attracting financing on a large scale requires a strong enabling environment. Investors seek the highest risk-adjusted return.