To describe how insights from behavioural economics could help monetary policy, we use a simple framework based both on the relationship between the interest rate, the real economy and inflation, and on the monetary policy decision-making process.^[25] This is loosely based on a simple so-called New Keynesian model that usually contains three relationships: one between the interest rate and the real economy, one between the real economy and inflation, and a monetary policy decision rule. These relationships are often used among central banks to describe monetary policy in more general terms. Inflation expectations are a key component of how monetary policy affects the real economy and inflation. Monetary policy decisions are based on forward-looking assessments of economic developments. We will discuss different behavioural economic concepts in each section.