The idea of a permanent tradeoff opened up the beguiling possibility that, in return for accepting just a bit more inflation, policymakers could deliver a permanently low rate of unemployment.
As of July 1, 2001, the financial sector is supervised by a single supervisory authority, the Financial and Capital Market Commission, the successor, in this area, to the Bank of Latvia. Hence, the financial sector will continue to benefit from the supervision framework that is among the strictest in Central and Eastern Europe.