It employs a variety of tools in a manner that is not mechanical but combines judgement and analytical rigour in reaching a money-based assessment of the risks to price stability. The main conclusion from our experience with monetary analysis is that, on the whole, it helps us to extract useful information from monetary aggregates about the inflation outlook and the associated risks.
This information has proven relevant and has made a decisive contribution to monetary policy decisions. There is, however, more work to be done towards deepening and refining our monetary analysis.