Yet, over time, the main role of these institutions might come to be restricted to providing credit enhancement measures in the limited areas where there is a need for policy. For example, public financial institutions could play a supporting role in nurturing securitization markets, such as markets for CP backed by receivables of small to mediumsized firms, by providing credit enhancement measures.
Flexibility in the economic system The third aspect is flexibility in the economic system. Policymakers must take appropriate measures on the macroeconomic policy front. They also need to take measures which promote the efficient functioning of financial intermediation. Moreover, the economy itself must respond flexibly to environmental changes and various shocks to return to a sustainable growth path.