And, analogous to this, any competent policymaker must know his or her own economy inside out. He must know what makes the economy tick; how the linkages in the economy interact with each other; how signals and information gets transmitted through these linkages; and what each of the knobs and dials on his dashboard does to calibrate the economy.
The process of self-discovery is as relevant for the individual as it is for the economy. The process of improving the economy starts after the process of understanding. BIS central bankers’ speeches  1  For instance, monetary policy may be transmitted through a variety of different channels. Most commonly, the real interest channel is used to influence aggregate demand and fine-tune the economy.