The coefficients obtained are a mixture of structural parameters of the economy and an expression of the authorities’ preferences. For instance, if prices are more sticky (as they are in Europe) interest rate moves have a bigger effect on the real economy. On the other hand, in that case fluctuations of inflation will more easily distort relative prices and lead to more welfare losses.
It is always good for our future generation if these funds are spent on productive purposes. There has been a lot discussed about the Fiji economy recently at the National Economic Summit. Economic growth has averaged around 2.4 percent over the past 5 years and is expected to average around 2.7 percent in the next 3 years.