It should also provide an anchor for inflation expectations and guide both employers and employees when undertaking forward-looking negotiations. However, it must be emphasised that at least some of the success of the inflation targeting framework rests on whether it is fully understood by labour, business, the private sector and the other sectors of the economy.
Another example is the parametric insurance scheme in the Mexican Caribbean, which has supported the restoration of coral reefs from the destruction caused by hurricanes over the last few years. In addition to their beauty and tourism value, coral reefs protect communities at the shore as they reduce the size of waves. Now let me move to highlighting transparency and incentives in preserving biodiversity.