Today, the idea that central banks can work on inflation expectations and increase the effectiveness of monetary policy by demonstrating their strong intention to achieve price stability forms a theoretical pillar of monetary policy in many countries, and is widely employed in policies such as inflation targeting.4  Recent years have also seen vigorous research on the mechanism that central banks -- even when facing the zero lower bound -- can "borrow" easing effects from the future by committing themselves to continuing with monetary easing even if economic activity and prices improve going forward.
In fact, the recent increase in intra-firm trading enables businesses to shift their activities across borders smoothly, thereby strengthening the response of economic activity to exchange rate movements in the long run. Asset price fluctuations and financial systems Asset price fluctuations have important implications for promoting more efficient resource allocations and achieving sustained growth in the long run.