By creating an environment of low and stable inflation, monetary policy will make a valuable contribution to maximum employment in the short and long run. A credible commitment to price stability helps anchor inflation expectations and affords the central bank the flexibility to adjust monetary policy to support output and employment adjustments in the face of economic disturbances.
We should take this as a warning that, if we don’t have the right environment in place, there are many countries that tourists can go to and investors can start their businesses in, instead of Fiji.