With enhanced investment opportunities, abundant savings in the region could be recycled within the region. It could also fill part of the large infrastructure funding gap. Lastly, well-functioning primary and secondary bond markets reinforced by an expanded investor base will improve the overall efficiency of financial markets, which in turn will aid macro-economic policy implementation.
Price stability is the most effective way for monetary policy to promote the other two goals. Thus, by helping the Fed achieve and maintain price stability, an explicit inflation objective would help the Fed promote all three of the goals set forth by Congress.