But I should add that the central bank can downplay those temporary price changes only if there is good reason to believe that they will not feed into other prices in the economy and affect inflation expectations. The reason we have been able to do that is because the inflation targets have helped to establish monetary credibility and to anchor inflation expectations.
Introductory remarks Luigi Federico Signorini Senior Deputy Governor of the Bank of Italy 2023 Central Bank Gold Custodian Conference Rome, 18 May 2023  Half a century after the demise of the Bretton Woods system, in which gold still theoretically functioned as the ultimate monetary anchor, the metal continues to account for a significant share of official reserves.