The end of the Cold War has yielded a substantial peace dividend, and the best economic performance in decades has augmented tax revenues far beyond expectations while restraining countercyclically sensitive outlays. The payout of the peace dividend is coming to an end. Defense outlays have fallen from 6.2 percent of GDP in 1985 to 3.4 percent this year.
Well, the answer is that in addition to monetary policy, regulation of the financial system, and management of the country’s external reserves, the Central Bank’s mandate includes promoting public understanding of the financial system and ensuring that customers get a fair deal.