Regarding monetary policy, as most of the interest rates of borrowings and savings by firms and individuals are based on policy rates, central banks can affect their behavior by changing policy rates. This would improve the effectiveness of monetary policy and help smooth the economic cycle in the long run. Enhanced access to financial services would also increase the effectiveness of fiscal policy.
For example, ensuring a means to transfer money to every individual would allow policy makers to design subsidization programs that are targeted at a specific segment of society. This would make possible a finer-tuned redistribution policy. In addition, tax collection would become more effective. In advancing financial inclusion, it is necessary to develop both "hard" and "soft" infrastructures.