Therefore, there is widespread agreement on the substantial benefits of price stability and central bank independence, on the forwardlooking nature of monetary policy and its need for credibility and commitment. Given these changes in monetary policy, the re-emergence of an inflationary wage-price spiral which was characteristic of the 1970s now appears less likely.
But even if these differences to the 1970s are reassuring, there is no room for complacency. First, oil prices have hiked more strongly and persistently than generally anticipated. Their present level in real terms even surpasses that of the 1970s.