8 The other major strand of our research on the optimal rate of inflation has concentrated on the allocative inefficiencies that are likely to arise in a world with positive inflation, owing to pricing distortions that arise due to infrequent price adjustments or “sticky prices.” If firms adjust prices infrequently, they have an incentive to set prices higher at the start of a contract than would be warranted by initial market conditions, knowing that inflation will gradually erode the real value of prices over time.
Similarly, the Bank has entered into bilateral MoUs and Memorandum of Cooperation with other domestic authorities, as well as foreign central banks with a view to exchanging information on AML/CFT matters, both spontaneously and upon request. Ladies and Gentlemen, Mauritius has also adopted its National Strategy for Combating Money Laundering and the Financing of Terrorism and Proliferation 2019–2022.