It is also necessary to ensure that the public’s confidence in monetary policy be strengthened by clearly establishing the independence and accountability of the central bank. Bearing these points in mind, I would now like to move on to the other theme of today’s speech, the fundamental issues concerning monetary policy management. IV. The Basic Thinking on Monetary Policy Management A.
Price Stability and the Central Bank Most people agree that the objective of monetary policy is the maintenance of price stability. I would like to explain why it is that this particular economic policy objective, among others, is assigned to monetary policy.