The second phase after the early 1990s, represents the period of financial sector reform, higher allocation of credit to the private sector, lower pre-emption by the government sector, moving away from administered interest rates to market determined rates even for government borrowing, introduction of international best practices and regulatory policies for strengthening the financial sector, increased competitiveness with entry of new private sector banks and more foreign banks, and allowing private shareholding in public sector banks.
That is, our forecasts are subject to revision when additional information comes to light. These forecasts are then used in what Alan Blinder would describe as a ‘dynamic programming’ plan. 5 This means thinking about what you want to 3 Nassem Taleb (2007), The Black Swan: The Impact of the Highly Improbable, Random House.