Even though the influence of external factors over price variables is great, the channels of monetary policy can still operate effectively when the general public has firm confidence in monetary policy. Finally, of course, there is another very important task.
Central banks should strengthen their international financial cooperation and construct a framework that allows them to cope jointly with the possibility of unstable international capital movements. Closing remarks Ladies and gentlemen, I anticipate that this seminar will provide a valuable forum for discussion of policy in response to the increases in cross-border capital flows.