But the banker who makes the occasional bad loan amidst a lot of good ones probably needs to be rewarded. Such patternbased monitoring by bank authorities, with serious punishment through vigilance action only if there is evidence of money changing hands, could control malfeasance while rewarding risk taking.
The most reasonable explanation for the lower inflation and hence steadier and longer expansion in the 1990s is the improvement in macroeconomic policies. By this I mean monetary and fiscal policies, or what used to be known as demand management policies. 3  I J Macfarlane, Statement to Parliamentary Committee, 15 December 1998 and 17 June 1999.