Arm's length dealing with financial markets  The second key arrangement for a well-functioning financial system – again using a fairly broad definition of the word 'governance' – is that the public sector deals at arm's length with financial markets. In other words, markets set financial prices and allocate financial resources. There are two dimensions here.
The other way to look at it is: we might have lost a little bit of output this year, but if we had postponed our actions, we would have lost more in the following years because the pressure to raise rates would have been even greater if we had not acted on inflation this year. In Tagalog, mas mabuti ang maaga kaysa magaling.