But this healthy situation notwithstanding, we would of course be remiss if we did not continue to watch developments closely for signs of financial vulnerability. Lastly, we are interested in investment and borrowing behaviour because it affects economic growth. New Zealand's growth in the past has probably been lower than it could have been, partly reflecting poor savings and investment.
The high and variable inflation environment prevailing in the 1970s and 1980s was no doubt one of the main factors hindering effective saving and investment, by making it difficult for investors to discern well-performing from poorly-performing investments. Low and stable inflation now obviously helps, but the fact remains that the quality of our investment decisions is crucial for our future economic growth.