Two major issues dominate the analysis and policy discussion in this Monetary Policy Report: the nature and extent of the global economic slowdown that began late last year and the consequences of the terrorist attacks in the United States. Together, these factors have made the economic outlook considerably more uncertain than usual.

The global nature of the economic slowdown that began in the United States in the second half of last year became increasingly evident through the summer of 2001. Although Japan had already been experiencing a period of protracted weakness, it was only around mid-year that evidence began to indicate that worldwide economic activity was slowing rapidly.

MPR Summary - November 2001