Economic policy should respond to the business cycle, not just to the government programme

Labore estimated in its spring forecast that economic growth would be close to zero this year but would accelerate over the following two years. This assessment still appears broadly correct. Inflation is likely to slow to close to the target of two percent somewhat faster than we anticipated. Decisions on measures to reduce the structural deficit should be made on the basis of the most recent available information and in a more dynamic manner than what the recently published government programme envisages for the coming years. (AI translation)

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