At the cost of being slightly technical, therefore, the rest of my remarks will address four issues that sit at the heart of this confluence: first, the choice of the appropriate price index as the population gets progressively included financially; second, the impact of financial inclusion on output and inflation variability and the trade-off between them – the dilemma that is central to the conduct of monetary policy; third, the transmission of monetary policy impulses through the economy; and fourth, the impact of financial awareness on expectations and hence on the credibility of monetary policy.
These findings, confirmed by several studies, may reflect the fact that the sustainability assessment introduces a forward-looking long-term element in otherwise predominantly backward-looking financial models. Furthermore, companies that adopt good ESG practices appear to have a competitive advantage resulting from innovation and lower operational, legal and reputational risks. We have also applied sustainability criteria to the management of our foreign reserves.