In any event, I believe the Eurosystem’s current position does not differ substantially from that of those central banks that are immersed in a similar line of thought. Where we may diverge somewhat more is the pace at which we are moving, largely as a result of the different state we are in relative to the scenarios indicated. For instance, in the Nordic countries the diminished use of cash is already a fact. Likewise, means of payment in China  10  https://www.bde.es/f/webbde/SPA/sispago/ficheros/es/estadisticas.pdf. 13  appear to be tending towards concentration in ecosystems managed by a small group of local technological giants outside the traditional banking system. What this discussion shows is the need we central banks have to understand the changes the economy is facing as a result of the digital transformation and, most particularly, to appreciate the scale of their impact on the financial sector. The importance of the functions assigned to us both in monetary policy and in payment systems means our action must always have the broadest consensus and be preceded by rigorous and in-depth analysis. Squaring the rigour of our decisions in areas of undeniable importance for society at large with the flexibility and swiftness of response that a rapidly transforming economy demands poses a challenge. To resolve this challenge we must call on our capacity to anticipate these situations so as to be able to analyse them in good time and in all their depth.
Obviously, it is difficult to decide exactly how much interest rates should be increased in order to ensure that the present surge in the economy does not lead to overheating, particularly since the current monetary policy regime with declared inflation targets has never really been subjected to such a test. We simply do not have any experience to fall back on. However, most people, including the Executive Board of the Riksbank, agree that the current repo rate will have to be raised sooner or later, although opinions differ as to when and how much. Whatever the Riksbank decides to do, the main lesson of the long boom in the USA remains valid: a long period of sound real economic growth is not necessarily the result of any exceptional external events, such as the emergence of a “new economy”. It is just as likely to be the result of a carefully conceived monetary policy which applies an active and sometimes rather forceful policy to make sure BIS Review 128/1999  2  that overheating - and subsequent deep recessions - are avoided. Naturally, a more detailed comparison between the USA and Sweden would have taken into account other differences too, such as the functioning of the labour market. The role of asset prices I should like to devote the rest of my speech to another topical issue in the American debate, and that is the actual and potential role of asset prices in monetary policy.