Over the long-term a commitment to price stability anchors expectations, improves the workings of the price mechanism, reduces transaction costs, protects savers and reduces uncertainty. This is what I meant at the outset when I said that the theory and practice of monetary policy making paralleled developments in growth theory – namely, both are now seen to hinge on institutional quality.
14  Morgan Stanley and Oliver Wyman Blue Paper, Wholesale & Investment Banking Outlook, 19 March 2015.