Thus, the more predictable the monetary policy response is, the greater its contribution to financial efficiency and financial stability. However, it is important to stress that, while a credible monetary policy aimed at price stability is a necessary condition for financial stability and financial efficiency, it is of course not a sufficient condition for achieving these objectives.
Moreover, stronger demand would be more consistent with an environment that remains quite supportive of growth, with low interest rates, low gasoline prices, solid real income gains, a high ratio of household wealth to income, healthy levels of business and household confidence, and continuing strong job creation.