This new entity will in addition to its core function of financing development enterprises serve two critical functions. At the external level to be on interlocutor between such external institutions as the IFC and MIGA, European Investment Bank, CDB and any other large funding agency and the Currency Union.
For example, about 90 percent of the CPI inflation differential between Japan and the United States in the past 10 years was attributable to the difference in the rate of decline in service prices. This appears to reflect the fact that, in Japan, nominal wages have been adjusted flexibly.