In a monetary targeting framework, this often boils down to the stability and the predictability of the money multiplier. In an interest rate targeting framework, on the other hand, success depends upon the strength of the relationship between the short-term and the long-term interest rates.
Finally, the stability of the relationship between the intermediate and the final target is critical to the successful conduct of the operations. Monetary Policy Transparency Transparency in monetary policy is emphasised in the recent years on the ground that it leads to a reduction in the market's uncertainty about the monetary authority's reaction function.