But any strategic implications drawn from the variance in the two policy paths would be purely illusionary. The smoother course of policy would not reveal any deep-seated strategic inertia: it would only reflect the same response to shocks with quite different dynamic properties. Monetary 1 policy would appear “passive” because the economy itself was evolving slowly.
With that, Carolyn and I would be happy to take your questions. 2  BIS central bankers’ speeches