I have serious doubts that these conditions are satisfied in practice.12 And if not, level targeting strategies can easily result in worse stabilisation outcomes than inflation targeting.13 In this context, I think the Hippocratic principle of “do no harm” also provides sensible advice for central bankers.
I am privileged to welcome all the distinguished participants and speakers on behalf of SBP, my colleagues and SAARC friends at the seminar who have gathered here today to exchange views on payment systems and correspondent banking.