While there is full commitment on the part of the Central Bank to achieve its price stability mandate, we need to recognize that monetary policy will have to act in concert with other economic parameters for full realization of the desired effects.. In this regards, the transmission mechanism through which policy decisions are channelled to the rest of the economy matters.
1 Over the past 15 years or so, for reasons on which I have elaborated in earlier remarks, many emerging market economies have run large, sustained current account surpluses and thus have become exporters of capital to the advanced economies, especially the United States.