Perhaps most important, since the ultimate goal of economic growth is to improve standards of living, allowing the currency to appreciate can help ensure that a greater proportion of output is devoted to household consumption, enabling social welfare to improve at a faster pace. Conclusion To sum up, growth in advanced nations, including the United States, faces serious headwinds.
For some other countries, growth is set to weaken markedly while inflation concerns remain, but real interest rates are already low or negative. In this speech, I would like to put current circumstances in the context of the internationally accepted inflation-targeting framework for monetary policy, as applied in New Zealand.