But alas, inflation targeting does not guarantee that a central bank practising it will be able to deliver consistently low inflation. All the debates about how to formulate monetary policy in order to deliver the best outcomes are still relevant. Should we use monetary aggregates? Should we use Taylor rules?
Over the past two years, building activity has fallen by more than half and now is well below where it was in 2000. House prices have shown significant declines in many areas of the country.