The comparison between actual monetary growth and the reference value is a key guide to assessing the medium-term outlook for price risks. The reference value for monetary expansion is derived from the trend rate of real GDP, the trend in the velocity of money and an inflation rate that appears acceptable under stability considerations.
BIS Review 36/2001  1  Other things being equal, if the working population grows more slowly or declines, this will eventually dampen potential output. However, an increasing amount of savings and a larger capital stock could counteract the effects of a shortage of labour. Countervailing effects could also be generated by technical progress.