Under such circumstances, if the role and responsibility of the central bank in charge of monetary policy management are not made clear, or if both domestic and overseas understanding of the central bank’s monetary policy management is insufficient, a country’s monetary policy intentions may not permeate sufficiently throughout the market. In addition, irrelevant information may disrupt the markets.
The idea of entrusting the responsibility of ensuring price stability with the central bank, an establishment detached from short-term interests, is a wisdom acquired from the history of battles against inflation.