However, by forgoing some consumption to increase national saving, we can take on some of that burden today and thereby raise the living standards of future generations. 4 A rise in saving can achieve that shift because the extra savings would be used to increase the nation’s stock of capital and increase our net holdings of foreign assets.
Have we ever been in a dilemma – or trilemma – situation. I will demonstrate how certain longstanding principles of sound central banking – which were embedded in our monetary policy framework from the outset – have guided our deliberations and actions through the recent turbulent times.