Monetary policy also had to 1/5  BIS central bankers' speeches  react to a number of headwinds, which reduced the impact of a given level of interest rates on economic demand. Some, such as an ageing population and the slowdown in measured productivity growth,1 are longer term in nature. Others were more temporary.
The evolution of the financial industry in Mexico constitutes a good example. Openness to foreign direct investment in the financial system was essential to recapitalize the banking sector and increase efficiency. It also brought other benefits, such as new technologies and products, and advanced risk management techniques.