For these reasons – and leaving aside additional effects due to the labour force and investment in human capital – an efficient financial system is indispensable for growth and necessarily becomes more complex with each advancing stage of economic development.
It is this underlying philosophy that has guided us in execution of our mandates that I will now turn to. First, stability of domestic prices creates an environment of certainty. The market formulates long term solutions based on this certainty. When there is uncertainty, the market develops a waiting option and slows down economic activity. A waiting option is not sustainable.