response to the covid - 19 crisis, in particular the use of additional monetary policy ( amp ) tools like large scale asset purchases ( lsap ) resulted in a significant increase in system liquidity in new zealand and in other comparable jurisdictions around the world ( figure 3 ). in new zealand, this necessitated a change to our monetary policy implementation framework, as explained in my speech to this conference last year and further outlined in a recently published bulletin. unclassified unclassified figure 3 : exchange settlement balances 4 individual settlement account ( esas ) holders can influence their own settlement cash balance, but the level of liquidity in the system is ultimately controlled by the rbnz. it is also subject to influence from the borrowing, revenue raising, and spending activity of central government. as amp tools continue to unwind over the next few years, we can expect the scl to decline. ultimately this will require more active management of the scl by the rbnz to ensure that there is sufficient system liquidity, as was the usual practice pre - pandemic. the return to a sufficient liquidity environment from an abundant liquidity environment is one that several central banks around the world are contemplating. there are some different approaches being considered around how system liquidity is best managed close to the “ sufficient ” level5. to that end we have commenced an internal liquidity management framework review which will consider the future management of system liquidity. as i discussed in my speech last year, we expect the “ floor ” system of monetary policy implementation to remain robust under different levels of settlement cash. but there is more to be learned about where the sufficient level of settlement cash is and how it changes over time. our liquidity management framework review will also consider how we manage system liquidity in a crisis. the review will address questions such as : do we have the right toolkit of facilities and operations and how do we calibrate these to best effect? the first part of our liquidity management framework review will focus specifically on the deployment of rbnz tools and facilities that had the objective of quelling market dysfunction in the covid - 19 crisis. whilst the lsap programme was a tool of monetary policy, it was also very important in restoring market functioning. other tools were also deployed alongside lsap at the peak of market dysfunction in 2020, including our bond market liquidity support ( bmls ) scheme and the term auction facility ( taf ). in addition to looking at

stanley fischer : the economic outlook speech by mr stanley fischer, vice chair of the board of governors of the federal reserve system, at the 17th jacques polak annual research conference, sponsored by the international monetary fund, washington dc, 4 november 2016. * * * with today ’ s data in the news, i will first say a few words about labor market conditions before moving on to discuss the economic outlook and monetary policy. 1 the labor market has, by and large, had a pretty good year. including this morning ’ s release for october, payrolls have increased an average of 181, 000 per month this year, a slower pace than last year but enough to keep the unemployment rate flat at about 5 percent. the unchanged unemployment rate reflects a positive, though perhaps transitory, development — mainly a pickup in labor force participation. the rise in participation may reflect the effects of the modest pickup in wages we are now seeing, with the rate of increase in the employment cost index having risen from an annual rate of about 2 percent last year to 2 - 1 / 4 percent so far this year. over the course of the past two years, a variety of negative shocks have affected the u. s. economy, but employment has resumed robust growth after each temporary slowdown : this recovery has been and continues to be powerful in terms of one of our two main targets — employment — and it is my view that the labor market is close to full employment. it is nonetheless interesting to ask what level of payroll gains would maintain an unemployment rate of roughly 5 percent. unsurprisingly, the level of payroll gains consistent with an unchanged unemployment rate is highly dependent on developments in labor force participation. if labor force participation was to remain flat, job gains in the range of 125, 000 to 175, 000 would likely be needed to prevent unemployment from creeping up. however, if labor force participation was to decline, as might be expected given demographic trends, the neutral rate of payroll gains would be lower. if we assumed a downward trend in participation of about 0. 3 percentage point per year, in line with estimates of the likely drag from demographics, job gains in the range of 65, 000 to 115, 000 would likely be sufficient to maintain full employment. last week we received some encouraging news on output growth. after a slow first half, real gross domestic product ( gdp ) increased almost 3 percent in the third quarter. however, the details were a little less exciting than the headline number. household spending growth