Poland is one of the few countries that can afford to conduct a conventional monetary policy and that means we have to act against the buildup of imbalances in the economy.
The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.
Monetary policy ultimately must be conducted in a pragmatic manner that relies not on any particular indicator or model but, instead, reflects an ongoing assessment of a wide range of information in the context of our ever-evolving understanding of the economy.
I think that is a very important milestone in our economic history that the monetary policy is now determined through a committee process where there are both independent committee members and representation from the RBI.
The Fed needs an approach that consolidates the gains of the Greenspan years and ensures that those successful policies will continue - even if future Fed chairmen are less skillful or less committed to price stability than Mr. Greenspan has been.
One factor that favors easier adjustment in EMEs is that U.S. monetary policy normalization has been and should continue to be gradual, as long as the U.S. economy evolves roughly as expected.
I believe that being in a position, as a central bank, to influence economic growth does not mean losing independence.
The expectation of gradual policy normalization should reduce the likelihood of outsized movements in interest rates.
When it comes to policies of central bankers, the biggest systemic risk we have... are those policies.
Long experience, in the United States and in other advanced economies, has demonstrated that monetary policy is most successful when decisions are rendered independent of influence by elected officials.
Communication has become a fulcrum of policy [of the Federal Reserve]. Policy makers shape expectations and, thus, economic behavior.
See {639156} and {639153}.
It's a challenge for monetary policy to communicate that our inflation objective is 2 percent.
