It also does not help when consumers find it difficult to assess and compare costs of financial products or services because of lack of information and technical jargons and terms that are too complicated or intimidating to understand. Financial literacy is, therefore, a protection mechanism that Governments can employ to empower and assist consumers to make informed choices and decisions.
While the conceptual relevance of this argument is beyond dispute, there are some challenging issues in operationalising it in the monetary policy process. Market-based and surveybased measures of inflation expectations exist, but they both come with a range of caveats and have often provided conflicting signals as to whether inflation expectations were anchored or not.