Private consumption has increased moderately, as the resumption of consumption activities has progressed while public health has been protected (Chart 4). Breaking down household consumption by services and goods, services consumption as a whole has increased with a pick-up in travel and dining-out.
He argues that the central bank should continue purchasing foreign bonds by creating money to achieve a target exchange rate consistent with a target inflation rate. Or, the country should adopt a crawling peg exchange rate system, in which the exchange rate depreciates by the same amount as the difference between inflation at home and abroad.