rent - seeking and portfolio hedging activities. in addition, high and variable inflation impeded growth as it was difficult for economic agents to undertake proper long - term planning. in such an inflationary and consequently unpredictable environment, it was impossible to sustain low interest rates as savers demanded a premium on their resources. main elements of the current economic strategy to reverse the cycle of large fiscal deficits and unsustainable debt, the government embarked on a comprehensive economic transformation programme beginning at the end of 2009 and supported by the international monetary fund and other international development partners. the objective of the programme is to secure long - term macroeconomic stability, thus creating an environment that is conducive to the low interest rates and long - term investment that are critical requirements for sustainable economic growth. the main pillars of the transformation programme are : eliminating the fiscal deficit over a four - year period and institutionalising prudent fiscal practices which will translate into sustained reductions in the bis central bankers ’ speeches debt to gdp ratio ; enhancing financial system stability and creating an enabling business environment. in the main, the government has made a strong start to the programme, achieving most of the quantitative targets under the imf stand - by agreement. this, which includes the extraordinary success of the voluntary jamaica debt exchange ( jdx ) in february last year, contributed to a trend decline in market interest rates. from the time that a programme was agreed with imf staff in december 2009, bank of jamaica ’ s 30 - day signal rate has been reduced from 12. 50 per cent then to 6. 25 per cent now, a fall of 625 basis points. the rate on market - determined 180 - day treasury bills declined even more sharply by 1, 024 basis points from 16. 80 per cent in december 2009 to 6. 56 per cent at the most recent auction last month. interest rates in the private money market and on deposits and loans also fell. the result is a substantially reduced cost of capital which is needed to encourage increased longterm investment and growth. the decline in interest rates is also linked to the positive trends and outlook for inflation. annual inflation declined to 7. 8 per cent in august from 12. 6 per cent a year earlier and is expected to fall further during this fiscal year to settle within the target band of 6. 0 per cent to 8. 0 per cent. for the medium - term, inflation is targeted to continue its fall towards the average inflation rate of our major trading partners. against

varied conditions that can make our policies more effective in fostering prosperity. now let me turn to these concomitant conditions for prosperity outside of the fed's mandate, which nevertheless should be carefully studied. many of them are straightforward, like housing, transportation, and childcare. even as remote work has increased, many jobs remain in person and on site. if people cannot live near work, either because of the cost or because jobs are located in nonresidential areas, they must commute. commuting depends on public or personal transportation - which in turn relies on infrastructure, such as roads and highways. and time spent commuting affects childcare decisions. caring responsibilities overall - for children or for other relatives - can keep people out of the workforce, and the onus falls disproportionately on women. this was particularly evident during the pandemic, and particularly true for black and hispanic mothers. 3 financial participation is also clearly connected to prosperity. being unbanked means less financial security. less access to credit means a smaller, or even nonexistent, safety net, but it also means less opportunity, be that buying a house to build capital, funding education, or starting a business. but there are other, less obvious - or even less quantifiable - issues. beyond location, a home provides both basic needs, such as shelter, and invaluable benefits, such as a sense of personal safety and dignity. it is a refuge in which our minds and bodies can 2 / 3 bis - central bankers'speeches recuperate and regenerate so we are prepared to participate in all aspects of life, including the next day's work. the costs of living in disadvantaged areas or of dealing with financial hardship can be seen in all areas of life. higher stress, the frequent necessity of working more than one job, the absence of benefits, and the time and money spent commuting - all these exact a financial and psychological toll. there is a fundamental aspect of our humanity, which is to live a more fulfilling existence - to enjoy the richness of life. in an economy that works for all, we should not live to work, but work to live. these are the factors that will allow people to thrive. of course, policies that can address these important issues are not made by fed policymakers. but the research agenda we are discussing today helps us to understand better those aspects of well - being that allow