Anchored inflation expectations enhance the efficiency of monetary policy and, by extension, the economy’s resilience to external shocks. In our February projection as well, inflation will remain stable in the coming period and will approach the target midpoint gradually, though it will most probably stay slightly below the midpoint until the end of the projection horizon.
", speech delivered before the Washington Economic Club, Washington, October 4, www.federalreserve.gov/boarddocs/speeches/2006/20061004/default.htm. BIS Review 7/2007  3  First, the budget deficit by itself does not measure the quantity of resources that the government is taking from the private sector.