The third and the most recent change concerns the increasing global interest in monetary policy within economies suffering from deflationary trends. In 1993, in spite of the similar background situation, that is, strong downside risks to the world economy and consistently falling inflation rates, there seemed to be no particular concern anywhere in the world about the decline in inflation rates per se.
2  BIS Review 28/2008  extent that they have a medium-term influence on price stability. This is because another fundamental law of monetary economics is alive and well in the globalised economy: flexible exchange rates are a sine qua non for price stability. Does a globalised world call for more international monetary coordination?