2  BIS central bankers’ speeches  Challenges ahead to achieve the 2 percent To conclude, let me briefly touch on one of the challenges that lies ahead; namely, how prices and wages will be set when we achieve 2 percent inflation in a stable manner.
It is hardly imaginable a modern economy could function smoothly without any cash transaction. Regardless of our achievement in advancing non-cash payment system, cash still remains a critical payment instrument. Fulfilling this responsibility is indeed not a simple thing. There are so many challenges in assuring that the society’s need of adequate currency in terms of quantity and quality for every denomination is met.