From this viewpoint, the strategy must be efficient in terms of allowing the decision making body to examine and weigh all relevant information, encompassing any diversity of views that may exist on the transmission mechanism. 3. Finally, the strategy should provide a framework for external communication. Here, transparency and effectiveness are linked. Effective communication facilitates the transmission of monetary policy decisions to the economy.
The policy framework The intrinsic volatility of highly-open economies means that domestic economic policies should be firmly focused on underpinning stability by ensuring resilience in the face of external shocks. A robust macro-financial policy framework must include a prudent fiscal framework that recognises the value of building buffers during high-growth phases in order to act countercyclically during downturns.