The coefficients α and λ capture the strength of the central bank’s reaction. This is of course a simplified model and a full representation of the ECB decision-making should include a broad set of variables which are leading indicators of future inflation.
In short, looking back at the reform experience at home and abroad, we have a better understanding of and stronger confidence in opening up and are determined to continue openingup. Based on the opening-up experiences of both manufacturing and service industry, it is reasonable to conclude that the rule of competition and opening up also apply to the financial sector.