Among the lessons he takes from the failed monetarist experiment are that central banking is an applied science and that our imperfect understanding of how economies and markets function implies that a good dose of humility is required – and I agree.
But this occurred in a difficult environment with many adverse price shocks. However, this has not jeopardised our achievement in anchoring medium to long-term inflation expectations. Moreover, anchoring long term inflation expectations at moderate levels has allowed to maintain short-term, medium-term and long-term market interest rates at low levels, thereby offering very favourable financing conditions to consumers, investors and companies.