Which version of the Taylor rule – the standard version, that uses current values of inflation, or the alternative version, that employs inflation forecasts – is the more reliable guide? I have explained my preference for using inflation forecasts rather than actual inflation in the policy rule: Monetary policy works with a lag, and therefore policy decisions must be forward looking.
In Finland, many important payment-related projects are under way, such as utilising the data content of electronic invoices, bank statement information and information contained in purchase transactions, and also the construction of an income register. The projects may, if successful, bring significant benefits and cost savings to consumers, businesses, financial service providers and also to the public sector.