Even if the present-day pragmatic Fed responds to exogenous rises in the growth of aggregate supply or drops in the non-inflationary rate of unemployment in a fully accommodative manner, inflation targeting may better communicate the strategy. For example, explicit inflation targeting statements may help to make it clear that the Fed is really fighting inflation, not economic growth. But there are also potential disadvantages.
We, at State Bank of Pakistan, believe that the growth of SMEs is vital for country’s economic growth and provision of quality banking services and products in this area remains paramount. I hope that, we can learn from Bank of China’s diverse experience in serving this particular segment.