This means that the action required to counter inflation – when inflationary pressures actually emerge – would be more forceful. 14  See A. Blinder and R. Reis, “Understanding the Greenspan Standard”, paper presented at the Federal Reserve Bank of Kansas City Symposium “The Greenspan Era: Lessons for the Future”, Jackson Hole, Wyoming, August 25-27 2005.
After all, they still retain economies of scale unavailable to small start-ups and intellectual capital unavailable to outsiders. FinTech may be exactly the shock the sector needs to restructure after the crisis. But policymakers also need to monitor developments closely. As more firms enter the market it will be important to ensure a level playing field between entities providing similar financial services.