The health of an economy is measured by its profitability. This is true for any economy in which the private sector dominates. Declining profitability leads to a drop in investment and, hence, lower employment. When considering what drives growth and unemployment in the long run, we need to look at the evolution of profits and capital accumulation.
"What should the Reserve Bank do if the exchange rate, as determined by the markets, moves away from what it considers to be a competitive level? This question comes to mind when one looks at two Monetary Policy Committee (MPC) statements made two years apart."