A stable environment of low inflation is no guarantee that the private sector will be willing to take risk and establish enterprises, in the process employing resources and producing more output. Neither can it guarantee that government will produce the public goods and services necessary to support sound growth and development.
Efficiency in such production, whether by the private sector or by government, can also not be guaranteed. Nevertheless, the absence of distortions arising from inflation significantly improves prospects that these very deserving things will happen and will be reflected in improved growth and employment outcomes. 2/4  Monetary policy in our case does not simultaneously target inflation and the exchange rate.