As confirmed by a growing body of literature, the main mistake relating to the 1936–37 decisions was that they were badly communicated to economic agents. 3 To sum up, a key element of the exit strategy is that the policy authorities must guide expectations. How can they do this? Let me first of all consider how it should not be done.
What do think about the growing power of central banks who seem to rule the world economy? Liikanen: I think we would be happy to do less in the future, but it was important that we acted in the crisis, we ensured sufficient liquidity in the market and we cut interest rates. That was the lesson learned from the depression of the 1930ties.