First I will provide a perspective on the historic decline in output that both the Australian and global economies have experienced and discuss the current state of the economy. Second I will explain how the monetary policy actions the Reserve Bank has taken are working to support the Australian economy, complementing the large fiscal response.
But they are indispensable and we are seeing initial signs of success. Ireland has already improved its competitiveness. Spain, too, has undertaken significant structural reforms and made good progress in reducing its current account deficit. It will now be important for the governments to maintain that course.