Thus, compared with the standard case, optimal policy may well involve much more rapid adjustment – a pattern that I will refer to as policy flexibility. Formal models of how monetary policy should respond to financial disruptions are unfortunately not yet available, and this is an area of research that I plan to pursue with Board staff.
Complementary alliances at the private sector level or topical level (such as alliances focused on improving electronic payments systems) provide an additional engine for framing and motivating countries to strive for high financial inclusion goals.