Fiscal space to use countercyclical policies have been eroded as high interest costs have resulted in the need for large primary surpluses in some countries in order to restore balance to the public finances. It is in this context that I refer to the Barbadian experience.
I hope those efforts are helping community bankers avoid spending time trying to understand rules that do not apply to them. One of the strengths of the Federal Reserve System is the quality of the research done by our economists and other professionals. The research we do on community banking helps guide our thinking on regulatory matters and on broader economic trends.