Moreover, the first pillar encompasses a broader range of analyses of monetary and credit aggregates with the aim of extracting information regarding future price developments. In short, the first pillar represents a view of the world within which monetary developments determine the evolution of the price level over the medium term.
3  BIS Review 88/2000  While inflation is ultimately a monetary phenomenon, a monetary policy aiming to maintain price stability over the medium term must clearly evaluate a broader range of variables.