Given the structural nature of the unemployment problems the solution is to be found, above all, in structural reforms aimed at well-functioning labour and product markets. An independent central bank does not only need a clear mandate. It has also to be an open and transparent institution, for at least three reasons.
First, transparency enhances the effectiveness of monetary policy by creating the correct expectations on the part of economic agents. A predictable monetary policy contributes to achieving stable prices without significant adjustment costs and with the lowest interest rate possible. The second reason is that in a democratic society  BIS Review 100/1998  –2–  the central bank has to account for its policies.