[7] Moreover, if more fundamental progress is achieved in terms of energy storage, the marginal cost of producing renewable energy may become considerably lower and more stable compared with the production of fossil fuels. This could much more fundamentally transform the role of energy in affecting overall price dynamics.
[8] Taken together, persistent supply shocks of this nature potentially pose a dilemma for monetary policy in the sense that improved energy efficiency and more stable oil prices have supported, and continue to support, consumption and investment, but risk entrenching expectations of low inflation.