For the first time in many years, we have been through a business cycle without an explosion in inflation expectations and without a large structural fiscal deficit. We have weathered the Asian crisis with our banks in good stead, and we remain well positioned to take advantage of the next international upswing.
Given the circumstances, we have also experienced a remarkably orderly shift in the mix of monetary conditions, to one more reflective of the current realities facing the economy. But clearly it would be a mistake to believe that this is the last time the framework will be tested.