Relative prices in a market economy will always change in response to changes in relative scarcities. For example, during or after a drought food prices are likely to increase. While monetary policy can succeed in maintaining stable prices, it is less successful in controlling real variables, such as the real interest rate or the unemployment rate.
The point being that price stability is a necessary but not sufficient condition for economic growth. Growth in the long-term is determined by a range of factors, including supply side factors, government policies and the general macroeconomic environment that monetary policy contributes to. The transmission mechanism of monetary policy in Namibia At the heart of any monetary policy framework is the transmission mechanism.