Indeed, perhaps the best way to raise output today is to remove the drag on confidence that results from such uncertainties. Summing up, there is a large degree of interaction between monetary policy and other policies that may in principle be geared towards different objectives.
Such interactions do not prevent 2  BIS central bankers’ speeches  a determined central bank from achieving its objective. But they do affect the time frame over which we can do so. What this implies is that, for stabilisation to occur no more slowly than is strictly necessary, all policy areas have a role to play.