Companies have further benefited from access to private credit which grew at an average rate of 25.5% for FY03-07. This growth has been supported by structural changes in banking sector which is largely private sector run.
One example is a Taylor rule, under which monetary policy makers would move the short-term target interest rate - the federal funds rate in the United States - up or down to respond to deviations in core inflation and unemployment from their target values.4 The results would be qualitatively similar to those of the nominal income targeting rule, with a temporary rise in both inflation and unemployment, though the increases would now be more keyed to underlying monetary policy objectives.