Archive for August, 2009

While the outlook is clouded by uncertainty, there are encouraging signs that we will return to positive growth this quarter. Stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring the growth of domestic demand. Globally, the vigorous policy actions taken by monetary and fiscal authorities appear to have reduced the probability of an extreme negative outcome for the global economy.

While most central banks have added a financial stability objective in recent years, the monetary policy and financial stability wings of many of our institutions have operated as two solitudes