##ity. labour economists have employed sophisticated econometric techniques and innovative methodological approaches ( such as studies of twins who followed different education and life paths ) to establish causality between education and private returns. 5 moreover, the social return to education – that is the benefit of increases in the human capital of the population for the economy and society as a whole – will, in all likelihood, be further increased as a result of so - called human capital externalities. such externalities arise, for example, through knowledge spillovers from more educated workers to less educated ones. 6 for general surveys of the contribution of human capital and education to economic growth, see krueger and lindahl and wasmer et al. ( 2006 ). de la fuente and ciccone ( 2002 ) review the literature with specific reference to europe. see, for example, domenech and de la fuente ( 2006 ) and cohen and soto ( 2007 ). the so - called “ mincerian equation ” ( developed by polish - american economist jacob mincer ) specifies a relationship an individual ’ s education and experience and his or her wages. see mincer ( 1974 ). for en extensive review of the micro evidence, see card ( 1999 ). the importance of human capital externalities in the process of development has been stressed by lucas ( 1998 ) and azariadis and drazen ( 1990 ), among others. empirical studies in the us have, however, failed to detect human capital externalities at the us state and city level ( e. g. acemoglu and angrist, 2000 ; ciccone and perri, 2006 ). moretti ( 2004 ) does provide some evidence of sizable ( and statistically significant ) externalities at the us plant level. the quality of education education, however, is only one component of the broader concept of human capital, which also involves on - the - job training and learning as well as cognitive skills. moreover, the quality of education is at least as important as the years of formal schooling. 7 these factors are economically significant. for example, the returns on training could be as high as 5 %, which is a rate comparable to the range of estimates for the private returns on the years of formal schooling of between 6. 5 % and 9 %. there is also plenty of evidence that points to the importance of the quality of education. [ slide 9 ] this is usually measured by pupil - teacher ratios, by public spending on education

. 5 per cent. here, i would like to also re - assure the population that the normalisation process is a necessary response to help contain the negative effects associated with a high inflationary environment. the inflation we are seeing remains largely imported, and has a relatively big share of commonality with other countries. central banks worldwide have engaged in monetary tightening, with many continuing to do so. the long - term losses of high inflation may outweigh the short - term pitfalls associated with policy normalisation. 5 / 6 bis - central bankers'speeches in this regard, to accompany the population and the business community, the bank of mauritius is rolling out a series of measures. first, banks are being provided with greater flexibility to restructure loan facilities such that bank customers can continue to fulfil their financial obligations. second, the bank is engaging with commercial banks to introduce a package of measures geared towards households and smes with the objective of easing their debt servicing. third, the bank of mauritius will also come up with additional macro - prudential measures to ensure that the banking sector remains resilient. fourth, the task force on financial sector resilience continues to meet, monitor, analyse and make necessary recommendations. the task force will meet on the 20th of december. the bank is also putting a dedicated channel at the disposal of businesses, households and individuals should they need any support or clarification, or should they encounter any issue with their bank. queries and issues may be channeled by phone on 202 3800 or the support @ bom. mu dedicated email. i also wish to inform you that the bank has completed its series of consultations with respect to the new monetary policy framework. the framework will be officially introduced in january 2023. under the new framework, the bank is introducing flexible inflation targeting. the inflation target for the country has been defined to be in a range of 2 to 5 percent, with the aim to achieve 3 per cent in the medium term as recommended by the imf. the key repo rate will also be replaced by the key rate. as part of the introduction of the new monetary policy framework, you will recall that the bank started, with effect from the 4th of august 2022, the issuance of a 7 - day bank of mauritius bill to all banks. this instrument will further improve the transmission mechanism of monetary policy signals and help anchor short - term money market rates. the operational target, which is currently our 91