Furthermore, monetary policy can be time-inconsistent, and to avoid difficulties from this issue, the intentions of decision makers must be transparent. An explicit long-term strategy goes a long way to facilitate coherence and clarity. Emerging economies confront specific challenges in the wise use of monetary policy. Many of these countries have histories of high inflation and are struggling to leave it behind.
Indeed, historically, much of the debate on the causes of the Great Depression has centered on the role of monetary factors, including both monetary policy and other influences on the national money supply, such as the condition of the banking system. Views have changed over time.