To begin with, the academic knowledge required when managing economic policy is knowledge of economics itself. Economics has been making remarkable progress year after year, both on the theoretical and empirical sides. In the management of economic policy including monetary policy, knowledge of economics has become essential.
It is said that the Great Depression in the 1930s gave birth to a new macroeconomics, and economics has been evolving while overcoming failures in actual economic policies. More recently, from the mid-1980s through the mid-2000s, the global economy enjoyed high growth with low inflation, and that period was called the Great Moderation.