[17]  This indicator allows us to gauge how much of the observed slowdown in credit conditions is due to  supply effects over and above the impact of monetary policy on credit demand. The indicator shows a marked contraction in loan supply since the start of the tightening cycle.
In recent years, especially, the biggest challenge facing central bankers may be the conduct of monetary policy in the face of the flattening of the Phillips curve and increase in uncertainty with regard to inflation dynamics.