And what will monetary transmission look like in the various currency areas? That said, one thing is clear: monetary policy cannot ignore long-term changes in the underlying conditions. The new world will definitely not be the same as the old one. The circumstances surrounding monetary policy – such as the structure of the financial system and banks’ business models – have changed.
At the same time, we must always put financial risks in central banking in the broader policy context and take into account the objectives and results of such policy. In general, disclosure is necessary, but not enough. Central banks need to ensure that the political decision-makers and the general public understand what the central banks are doing and why.