As an activity intrinsically related to the anchoring of longer-term expectations, monetary policy making must be governed by principles and implemented by practices that have withstood the test of time.
My experience as a central banker in a period of significant financial tension has reinforced, more than ever, my conviction that adhering to the sound core principles on which I have elaborated is of the essence. Thank you for your attention. References Adalid, R. and C. Detken (2007), “Liquidity shocks and asset price boom/bust cycles”, ECB working paper No 732. Alesina, A.