In its most extreme form, there is a risk that governments finance their spending by borrowing directly from the central bank, as has been the case in number of historical episodes of hyperinflation.7 But the effect can be more indirect. Suppose that the public comes to worry about the inflation consequences of large public debts, leading inflation expectations and long interest rates to rise.
And only by doing so can we get over the long-standing bad habits of courting promotion through personal relationships and eradicate corruption in the personnel system. 3. We shall strengthen the reform of the system of hiring financial practitioners, in a bid to ensure that financial enterprises are governed by qualified Board and that qualified talents provide financial services to the public.