But these become indispensable in preventing and counteracting the risk of deflation. Let me examine them in turn. The ability of the monetary authorities to anchor expectations to the price stability objective is crucial – and can be thought of as a first line of defence against deflation risks.
2  Thank you for honouring our invitation and May God bless us all. BIS Review 54/2010  The New ¢ banknote  Front  Back  BIS Review 54/2010  3  Poster  4  BIS Review 54/2010