Prospects for growth in the international financial services sector of developing countries A quick evaluation of the future of the international financial sector, more familiarly termed the offshore sector, shows that, as high net worth companies and individuals grow in wealth and seek vehicles for tax planning to reduce their tax liabilities, the international financial services sector worldwide will grow despite efforts to prevent it.
For both these reasons, raising the longer-term objective for inflation could make expectations more sensitive to recent realized inflation, to central bank actions, and to other economic conditions. That greater sensitivity would reduce the ability of central banks to buffer the economy from bad shocks.