Macroeconomic policy settings have been highly supportive of growth. Discretionary fiscal easing amounts to 1¾ per cent of GDP in 2002, following a similar stimulus last year. Nominal interest rates remained low in 2001, pushing real rates down to very low levels during the course of the year as inflation picked up and the effective exchange rate depreciated by 8 per cent compared with 2000. However, the decline in equity prices probably significantly reduced the impact of low interest rates and the depreciation on overall financial conditions and, therefore, on output. Thus far this year, monetary conditions have reversed somewhat, as the currency appreciated until the spring and interest rates have risen.