Monetary stability has an internal dimension (price stability) and an external dimension (exchange rate stability). Recently, the internal dimension of monetary stability - price stability - i.e. creation of low-inflation environment has become the primary objective of central banks. Achieving and maintaining monetary stability is the central bank's ongoing contribution to the creation of conditions for a sustainable economic growth. Central bank independence is a prerequisite for the implementation of monetary policy leading to price stability. The primary aim of monetary policy and the central bank's objective are laid down in the provisions of Article 98 of the Constitution of the Czech Republic and of Article 2 of Act No. 6/1993 Coll., on the Czech National Bank. These charge the Bank with maintaining price stability.
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