Before proceeding, let me note that the comments expressed reflect my views only and are not necessarily those of my colleagues on the Board of Governors or the FOMC. First, I want to explain the theoretical view of the dangers associated with deflation.
The importance of MSMEs to our country and our people cannot be overemphasized: they account for 35.7% of our economy as measured by GDP, constitute 99.6% of registered firms and employ 62% of our workforce. In other words, additional support granted to MSMEs will have strong multiplier effects.