To help contain these, the Monetary Board approved, just last month, two important reform packages. First, the second phase of reforms in the foreign exchange regulatory framework, aimed at promoting greater integration with international capital markets and enhancing risk diversification in support of an expanding economy with global linkages.
Monetary policy which is geared towards short-term employment growth or which even attempts to push unemployment below its structural level will only end up delivering higher inflation rates. This is what transpired in the 1970s and early 1980s, when inflation in the major industrial countries averaged roughly 8½%.