Establishment of such an economic life requires consistence, patience and persistence in taking appropriate improvement measures whenever the chance presents itself, no matter how small that step is.
This increases the uncertainty surrounding the workings of the monetary transmission mechanism. Monetary policy making becomes more complicated since the nature and extent of influence of exogenous shocks on the domestic economy is difficult to determine in advance. With highly integrated money and capital markets, changes in sentiment, whether justified or not, can have profound implications for our economy.