Monetary policy plays an important role in shaping the macroeconomic environment in which economic agents operate. The best contribution that monetary policy can make is to provide a low and stable inflation environment that is conducive to sustainable long-term growth. The main monetary policy tool at the disposal of the Bank is the interest rate.
A decade later, what initially started as a home mortgage crisis that adversely affected or displaced homeowners in the US eventually developed into a global financial crisis. The lesson is clear: efficient and effective insolvency systems are necessary in ALL constituencies, no matter their level of economic development. Having a well-developed insolvency law is important for the development of an effective insolvency system.