We also know that competitive devaluations are lose-lose for the global economy, since they lead only to greater market volatility, to which other central banks are then forced to react to defend their domestic mandates. So we would all clearly benefit from enhanced understanding among central banks on the relative paths of monetary policy.
Put another way, “financial education or financial literacy” must be at the top of your agenda. As the CLICO crisis underscores, the rapid pace of financial innovation requires that financial institutions contribute to providing more information and more financial education to the consumer public.