For macroprudential policy this is not the case. Potential policy actions are manifold and policy outcomes, the avoidance of systemic risk, is difficult to quantify. Furthermore, for monetary policy, we can draw on a rich history of cross-country experience, data, and models to inform us how interest rates affect inflation.
The March quarter national accounts show this clearly, and a range of other indicators show a distinct improvement from their March low point (Graph 3). ·  Consumer sentiment, although declining in the second half of 2000, had remained above its long-term average until it fell sharply in March. It has now regained a level above its long-term average.