Ultimately, any assessment of the appropriateness of the specific quantitative value requires weighing off the costs of inflation and the rationales for tolerating small positive inflation rates. The costs of inflation Recent evidence confirms a negative and significant effect of inflation on long-term growth, even at moderate rates of inflation.
11 Central banks and other financial authorities are working to supplement the traditional regulatory and supervisory approaches with the development of public-private cooperation and the adoption of new tools to address cyber risks.