These are (1) the adoption of 2 percent, or close to 2 percent, as a target or a numerical definition of price stability; (2) the growing importance of anchoring medium- to long-term inflation expectations to achieve price stability; (3) large-scale purchases of financial assets as a nontraditional monetary policy tool; (4) the adoption of forward guidance over the future monetary policy stance as another nontraditional monetary policy tool; and (5) the strengthened role of central banks in light of macroprudential policy.
Better and more timely information promotes better allocation of resources, including the global allocation of capital. The financial crises of the last several years indicate that greater transparency is needed on levels of external debt, including short-term foreign currency debt of the central government, and on levels of international reserves, including financial derivative positions.