For 1996, guidelines were set at between 6 and 10 per cent, providing for real growth of 3 to 4 per cent, and inflation of 6 to 7 per cent. Pure monetarists would have required growth in the money supply of not more than 4 per cent (the growth in the real economy in a similar situation).
Credit rating agencies will also be tougher about the information they demand from securitizers, and I expect they will be more skeptical about especially complex and opaque instruments. To support these efforts to strengthen market discipline, the PWG called for the private sector to establish several working groups to make recommendations concerning best practices in key areas.