ABSTRACT
This chapter discusses the way in which monetary policy might affect longer-term growth and turns to the way that it relates to short-run or cyclical developments. The displacement of bank notes by stored value cards would have little or no influence on the ability of the central bank to implement monetary policy. Central banks have always been in the forefront of those that promote low inflation or price stability as a or the goal of monetary policy. Central banks use monetary policy reports, inflation reports, press releases on fixed meeting dates, minutes of meetings of the monetary policy committee, speeches, and articles in their review or bulletin to communicate their views on these matters. According to the staff at a number of central banks with inflation targets, the quality of monetary policy discussions within the central bank has been significantly improved by the introduction of explicit targets.
