It is a leadership responsibility. It requires leaders to take a long hard look at the current culture, the existing business processes, the work attitudes and behaviours they foster. Without first establishing what the current culture is, the issuance of lofty mission statements or long lists of core values are merely paying ‘lip service’ to implementing effective cultural change.
I tried to underscore in my intervention today the central importance of the price stability objective in the design of monetary policy, a result that the optimising analysis presented at this conference underpins and reinforces. I emphasised in particular the role of credible commitment and the efficient management of private expectations in the conduct of monetary policy.