In monetary unions this is even more the case because countries share their monetary sovereignty and lack the possibility to manoeuvre the nominal exchange rate to correct internal and external imbalances. The policy lessons for the future are clear: First, monetary policy must remain focussed on its key objective of delivering price stability.
The third objective relates to the revamping of the credit delivery system which has become necessary for accelerating the credit flow from the banking system. A number of measures announced fall in this category. I would like to list the most important among them. The mandatory consortium requirements for credit limits of Rs.500 million and more has been dispensed with.