The empirical literature on the Chilean case provides evidence of a negative correlation between the pass-through coefficient of nominal depreciations to inflation and the credibility of the Central Bank. Said credibility is fundamental to allowing the real exchange rate to contribute in the adjustments of the economy. As for recent developments, the evidence shows that more autonomous central banks have implemented more aggressive monetary expansions (Figure 3). Conclusions Twenty years into the era of autonomy of the Central Bank of Chile, we can say that it has succeeded and it is consolidated. There remain challenges ahead. The evolution of the economy in the past few years has raised issues that need to be further analyzed to improve the policy framework. An objective look at reality – acknowledging the personal conflicts of interests I have in acting as an independent referee – shows that our country’s current monetary policy has succeeded as never before. The business cycle has been smoothed and low inflation has been consolidated. Inflationary expectations have stabilized and it is possible to implement a truly countercyclical monetary policy. Of great support has been the accountable and predictable fiscal policy. The successes in the conduct of monetary policy owe to the work of many people. Many from outside the Bank have stressed the importance of its autonomy and its macroeconomic achievements, and have also made strong contributions to improving the conduct of monetary policy. This enables the consolidation of the institution. Many from within the Central Bank have contributed decisively as well.

In just a few years, many new electronic services and gadgets have become natural parts of our lives. This has also influenced how we execute payments. Payments via Internet banking, mobile banking and card payments over the Internet have become the norm. Paperbased instruments such as cheques and mail giros have become less important. Norway is a good example of the transition from a paper-based to an electronically-based payment system. Only twenty years ago, 90 per cent of payments from deposit accounts were made using paper-based instruments such as cheques and paper giros. Today, more than 95 per cent of such payments are made electronically, mostly via payment cards and Internet banking. The first results from Norges Bank’s cost survey were published today. The survey estimates the social costs of using and producing payment services in Norway to around 11 billion kroner, or just under half a per cent of GDP. This estimate covers payment activities by banks, subcontractors, the central bank, households and merchants. The estimate for Norway is quite low in an international context, although estimation methods may vary. How we organise our payment system has consequences beyond the system. Direct debiting and electronic invoicing will, for example, involve substantial savings for businesses. Thus the potential savings for banks and the rest of society of moving towards more efficient payment systems are considerable. Payment cards and Internet banking have not only replaced cheques and mail giros, they have also contributed to a reduction in the use of cash.