If we continue to practise these values daily and effectively, in my opinion the Banco de España can, among other things, help establish a fully fledged assessment culture that boosts the efficiency and transparency of public policies and enables us as a society to properly integrate long-term considerations into decision-making. The importance of incorporating long-term considerations into economic policymaking The available evidence on the determinants of long-term growth points to democracy and the quality of its institutions as a factor that contributes positively to economic growth. The fact that institutional quality determines the ability to incorporate long-term considerations into decisionmaking may help explain this relationship. These considerations are essential to the idea of progress and, in economic policy, to defining and implementing measures that foster prosperity and opportunities for all citizens, both present and future. Central bank independence is warranted precisely on those grounds.1 An inflationary bias arises when the monetary authority lacks independence and, in pursuit of short-term objectives, stimulates demand by repeatedly using monetary policy beyond what would be consistent with its inflation target. Higher levels of economic activity and employment can be attained in the short term, but the costs come later. The inflationary bias is ultimately anticipated and built into agents’ expectations and, therefore, into pricing and into wage negotiations. The final outcome is higher inflation, without persistent improvements in the level of output or employment in the economy. This renders monetary policy ineffective and commitments to price stability cease to be credible.

We can do so adopting a culture of permanent assessment of the actions arising from our responsibilities; providing other economic policymakers with the best analyses and proposals for improving economic growth and citizens’ well-being; assisting and collaborating with the research community in the use of our information to contribute to that objective; and promoting – also in collaboration with the public and private sectors – the economic and financial education of the public at large, enabling them to sufficiently understand and appreciate public policies and take the best financial decisions for themselves. This is part and parcel of our commitment and service to Spanish society. 1 For a discussion of the role of the independence of economic regulators, see P. Hernández de Cos  (2020), Testimony by the Governor of the Banco de España before the Audit Committee on Democratic Quality, the Fight against Corruption, and Institutional and Legal Reforms. 2 See S. Albrizio and J. F. Geli (2021), “ An empirical analysis of the determinants that can boost Next Generation  EU’s effectiveness”, Analytical Articles, Economic Bulletin 4/2021, Banco de España. 3 For a discussion on the importance of the use of administrative data by researchers, see M. Arellano (2018), “El  acceso a los microdatos administrativos públicos: la nueva frontera de la investigación económica y social”, XVIII Aula de Verano Ortega y Gasset, UIMP, Santander, 20–21 August. 4 See the Banco de España “Survey of Financial Competences”.