We are in a difficult situation in terms of achieving 2 percent inflation by fiscal 2020, as it is taking more time than expected for inflation to rise. Nevertheless, the momentum whereby an improvement in the output gap leads to an increase in actual inflation, and then a rise in inflation expectations, is maintained.
However, all firms interested in participating in the payment system will have to recognize explicitly the challenge of maintaining the existing system while building the new one. Lessons for public policy What are some of the lessons for public policy that we have learned from our experience with electronic payments since the 1960s?