Recent technological developments and past technology transitions suggest that the world
could be on the verge of a profound shift in transportation technology. The return of the electric
car and its adoption, like that of the motor vehicle in place of horses in early 20th century,
could cut oil consumption substantially in the coming decades. Our analysis suggests that oil
as the main fuel for transportation could have a much shorter life span left than commonly
assumed. In the fast adoption scenario, oil prices could converge to the level of coal prices,
about $15 per barrel in 2015 prices by the early 2040s. In this possible future, oil could become
the new coal.
This paper surveys decision-making roles of governing bodies of central banks that have formally adopted inflation targeting as a monetary framework. Governance practices seek to balance institutional independence needed for monetary policy credibility with accountability required to protect democratic values. Central bank laws usually have price stability as the primary monetary policy objective but seldom require an explicit numerical inflation target. Governments are frequently involved in setting targets, but to ensure operational autonomy, legal provisions explicitly limit government influence in internal policy decision-making processes. Internal governance practices differ considerably with regard to the roles and inter-relationships between the policy, supervisory, and management boards of a central bank.