Regular discussions between the central bank and the government will be necessary and some form of accountability to parliament will have to be established. It is also important to explain monetary policy 3  BIS Review 88/2000  decisions regularly to the public, together with an assessment of the progress made in achieving stated objectives.
I say “appear”, because policymakers should be humble in their pronouncements.2 Estimates of the degree of slack in the economy vary widely and are often revised. Model outputs, however complex they may be, should be treated with due caution, and judgement based on experience remains an essential part of the policymaking process.