Looking forward, improvement in financial savings would depend on the further deepening of the financial sector, particularly through the continuation of insurance and pension reforms. Assuming the tax structure to remain stable over the coming five years, the growth of financial savings is likely to maintain its pace with the growth in nominal income.
Another way of reinforcing this promise of low interest rates is the idea of shifting from targeting inflation to targeting nominal GDP. 56. Is communication an equally potent policy tool for EME central banks? How effectively are they using communication as a policy tool?