2  The methodology is similar to Jarociński and Smets (2008), “House prices and the Stance of Monetary Policy”, Federal Reserve Bank of St. Louis Review, July/August, 90(4), pp. 339–65.
2  BIS central bankers’ speeches  Yet, policy makers need more than just good inflation forecasts: we also need to understand the inflation process in order to better assess the role of monetary policy. We must also be able to explain our reasoning to the public, as the management of inflation expectations has become an important monetary policy channel.