It also follows that if inflation is in line with its target and if inflation expectations are well anchored, more weight can be given to stabilising or increasing growth that is below potential, without sacrificing much price stability. This does not imply a change in mandate, and is consistent with a flexible inflation targeting framework, such as we have in South Africa.
What does appear to have changed is that the burden of stabilisation and growth stimulus is falling increasingly on central banks, particularly in those countries that no longer have any fiscal space. In many countries, the response to the crisis was initially through both monetary and fiscal policy easing.