The quantity theory of money holds that prices move proportionately to changes in the money supply so that inflation is linked to  BIS Review 25/2001  1  money growth. Together, these propositions identify both what monetary policy can achieve and what it cannot and therefore delineate the responsibilities of central banks.
1 In recent months, we have seen a high level of engagement from banks and community organizations in discussions and comments about revising the CRA regulations, which serves as testament to the value of the CRA and provides valuable suggestions for improving our regulatory approach.