Banca d’Italia and SUERF workshop ‘The effectiveness of monetary policy in a low interest rate environment’ Welcome address by Daniele Franco Senior Deputy Governor of the Bank of Italy Rome, 18 November 2020  I am happy to welcome you all to the Banca d’Italia and SUERF’s joint Workshop on ‘The effectiveness of monetary policy in a low interest rate environment’.
An important effect of such public acceptance of price stability is that it erodes the standing of those who would direct central bank action toward other ends. In such an environment, workers, businesspeople, and investors can make plans with the expectation that nominal magnitudes will be predictable and so devote their attention to more productive matters.