His prescriptions include: 1. being explicit about the exact weights applying to each of the elements in the central bank’s objective function 2. establishing a presumption that policy will be adjusted according to a rule, with an annual review of the rule 3. communicating uncertainty by publishing, for each member of the monetary policy committee, the full probability distribution of their expectations for key variables.
However, the lack of clearly-defined and fully monetized cost structure affect the adjustment of savings ratio. It is therefore important to expedite the reform of the public sector and the transition of the functions of the government. IV.