and cash has widened further and that the cut - off point will therefore occur at an amount lower than sek 70. in this case, society would benefit even more from a reduction in the use of cash. make the costs visible an important basic insight is that the costs of different types of payment exist, even if they are not visible. they affect the consumers in that goods and services become more expensive. if these choose less efficient instruments of payment to a greater extent, then the price increases will be greater. there is thus reason to choose a method of payment that saves resources in society. as in other contexts, the consumers benefit most if we receive correct information about the price of the services we buy. the riksbank ’ s studies of the swedish card and cash market indicate that we use cash too much and cards too little from a socioeconomic point of view. on the other hand, the results also depend on age, in that the young people ’ s choice is fairly close to the choice they would make if the costs were visible and not hidden. perhaps payment behaviour will become more socioeconomically efficient in future generations? i believe that we have all gained a greater insight into the fact that payments cost money. the discussion of cash - in - transit robberies has drawn attention to both the costs of cash management and the rising risks of human tragedy. the best means of reducing cash management – and the means that appears most reasonable given the riksbank ’ s study – is to openly price payments. how should this be done? to begin with, the banks could make a charge for withdrawals from atms. experiences from other countries show that even a small charge can have significant effects on the consumers ’ choice between card payments and cash. then the banks could use the income from the atms to reduce the fees for card administration that synovate temo, 2006. “ survey of banknotes, coins and use of cash and cards ”, december 2006. the average consumer was defined was a 41 - year old man with upper secondary school education and an annual income of sek 350, 000 - 400, 000 and who lives in a two - person household. they charge the retail trade. 10 in the long term this would benefit us consumers in the form of lower goods and services prices. perhaps the retail trade could also discuss charging a fee of those of us who insist on using the most expensive credit cards – that is where the hidden cost of the payment is highest. charges on

so that deflation as well as inflation are avoided, monetary policy can then exercise a stabilising influence and help to smooth economic fluctuations around the long - term trend. problems arise if resource utilisation becomes so high that inflation starts to accelerate and the central bank has not intervened. people may then begin to count on inflation remaining high in the longer run. a higher level of inflation may then be established, whereas the effects on production and employment will be only temporary. this is a reason why the central bank should act with foresight and be alert to the development of inflation expectations. the potential for influencing fluctuations in activity around the trend is dependent on people ’ s appraisal of the central bank ’ s determination and ability to maintain price stability. central bankers talk of the importance of credibility, by which is meant the extent to which people expect inflation to be in line with its targeted rate. the degree of credibility is conditioned by, for example, the historical record of inflation and the existence of government financial deficits. weak credibility calls for caution in monetary policy, just as higher credibility confers more room in which to manoeuvre. experience has shown, moreover, that even in the shorter run, the possibility of influencing employment and unemployment via monetary policy is very limited. limited fluctuations around the growth trend are by no means sufficient condition for a smooth development of employment and low unemployment. comparisons between countries and regions reveal that a similar growth pattern, even over a considerable period, can involve markedly divergent effects on employment and unemployment. this highlights the function of the labour market. it is there that measures must be taken in order to tackle problems with employment and unemployment. i want to underscore some conclusions from this discussion. monetary policy cannot have growth as the primary objective because it is not capable of influencing growth in the longer run. at the same time, monetary policy can be used to smooth fluctuations in activity around the growth trend. but i should emphasise that this presupposes that the central bank is committed to price stability and that its policy is perceived as credible. with low inflation, moreover, the economy will function more efficiently. it is important, i believe, to realise that price stability ’ s status as the monetary policy objective does not imply a lower priority for growth and employment as economic policy ’ s overall objectives. rather than being an impediment, low inflation creates good conditions for growth. in order for this to be combined with low unemployment, the labour market must