In addition, if the increase in the productivity trend is unexpected, it will generally result in lower inflation for a while, as wage gains, based on the previous trend of productivity, are more than outpaced by the faster increase in productivity, lowering unit labor costs and hence inflation. This allows, in principle, faster real growth, lower unemployment rates, and lower inflation.
Therefore, unless the banks in the developing countries are firmly committed to treating their customers fairly and put in place appropriate systems and processes to ensure that, they would be well advised to refrain from riding the bandwagon of retail banking. Why the growing interest in retail banking? 18.