However, like the students who see through the professor’s incentive, economic agents understand the incentives of the monetary authority. If they anticipate a monetary policy stimulus, inflation will rise, but real wages will remain constant. In the expectation of inflation, trade unions will already have negotiated a wage increase.
An important issue is relating to the security levels of use within the various operating departments in the banks. The common level of entry is the use of validation of authorised access (in the form of authorised User-Ids) to be further authenticated by correctness of passwords keyed in by the authorised users.