Resolution of challenges in the real sector; for example skills shortages or drought – induced agricultural losses requires other policies: stated differently as old people here used to say “nobody can use another person’s teeth to smile”. So to end the analogy, the teeth which will bring a smile to the resolution of those issues cannot be drawn from the mouth of monetary policy.
4. Is price stability enough? But this surely cannot be enough. For we all are aware of the strained circumstances of the international economy in 2009: and are no doubt cognisant of the impact of these developments on the prospects for the domestic economy. So, as William White asked two years ago, “Is Price Stability enough?