Ladies and gentlemen, let me contribute six observations to the issue of our panel discussion which were obviously similar. The first observation relates to the role of monetary policy in a situation when the economy is possibly entering a new era. Some proponents of the New Economy claim that monetary policy should be relaxed to “give growth a chance”.
Now, while I certainly have sympathy with economic policies supporting economic growth, employment and welfare, I think this categoric claim is beside the point. Monetary policy should always and unambiguously - with or without a “New Economy” - pursue its primary objective of maintaining price stability. A stable anchor for price expectations is particularly important in a period of heightened uncertainty.