11  Iwamura, Shiratsuka and Watanabe (2006) argued that this fact is difficult to explain in the absence of differentiated liquidity services provided by money and government bonds. Yet, there arises a further question as to why money can provide liquidity services superior to bonds. The technological function of money as memory on record-keeping on market transactions may be a partial answer (Kocherlakota (2005)).
12  The public information shared commonly by Board Members and market participants is likely facilitate coordinated action toward returning to the normal state of the economy. 4  BIS Review 112/2006  [6] Gerlach, S., and Svensson, E.O. (2002) “Money and Inflation in the Euro Area: A Case for Monetary Indicators?” CEFP Discussion Paper, No. 3392. [7] Hayashi, F., and Prescott, E.C.