This has also been confirmed by studies that have found a strong relationship between monetary growth and inflation at low frequencies. In other words, the relationship between money and prices is stronger between the trend-like developments than between the business cycle fluctuations. One interpretation of the international portfolio capital flows that influence monetary developments is that they introduce greater “noise” in shorter-term monetary dynamics, thereby increasing the importance of seeking the underlying rate of monetary expansion by looking at the lower-frequency, trend-like component of monetary growth. Notwithstanding the complications created by an increasingly complex international financial system, money has been, is and will remain an important indicator of inflation. The monetary policy strategy devised by the ECB, with its medium-to-longer-term orientation and the prominence it assigns to economic and monetary analysis, is well placed to address some of the implications of globalisation for inflation dynamics and price stability. The broad analytical framework on which the ECB’s two-pillar strategy rests is well suited to detecting risks to price stability and to the economy as a whole. There is a need to intensify the analytical efforts to deepen our understanding of several aspects of financial innovations, changes in the international financial system and their implications for the assessment of medium to longer-term risks to price stability. Indeed, as our current agenda of enhancing the monetary analyses demonstrates, the ECB is in the vanguard of developing such tools. References Adalid, R. and C. Detken (2007), “Liquidity Shocks and Asset Price Boom/Bust Cycles”, ECB Working Paper Series, No 732.

Tuan-tuan dan Puan-puan, Kami amat berbesar hati dengan kesudian Yang Amat Berhormat Dato' Seri Abdullah Ahmad Badawi untuk melancarkan Laman Informasi Nasihat dan Khidmat Bank Negara Malaysia atau Bank Negara Malaysia LINK pada hari ini. Kami mengambil kesempatan dari kehadiran Yang Amat Berhormat Dato' Seri di taklimat ekonomi di Bank Negara Malaysia pada pagi ini untuk merasmikan Bank Negara Malaysia LINK. Penubuhan Bank Negara Malaysia LINK merupakan komitmen Bank Negara Malaysia untuk meningkatkan lagi perkhidmatan yang diberikan kepada orang ramai dan membantu meningkatkan akses pembiayaan kepada perusahaan kecil dan sederhana. Perasmian ini amat bermakna kerana Yang Amat Berhormat Perdana Menteri merupakan peneraju kepada peningkatan sistem penyampaian sektor awam. Yang Amat Berhormat Dato' Seri juga telah memainkan peranan penting dalam usaha meningkatkan potensi perusahaan kecil dan sederhana sebagai enjin pertumbuhan ekonomi negara kita. Ladies and Gentlemen, Bank Negara Malaysia has always been in direct contact with the public. The Central Bank receives walk-in members of the public seeking information in relation to our operations, policies and regulations as well as those who seek redress on financial issues. The SME Unit in Bank Negara Malaysia also has direct contact with the SMEs relating to issues of access to financing. The establishment of Bank Negara Malaysia LINK is to allow the interface with members of the public as well as the SMEs to be centralised and conducted in a more efficient and effective manner. The premises of the Bank Negara Malaysia LINK was previously the Kuala Lumpur branch of Bank Negara Malaysia.