To that extent, the sterling link imported to the Dublin-based authorities the credibility of the London authorities in regard to inflation, though by the 1970s, this was nothing to write home about (Figure 3). So, for three-quarters of a century after Independence, Ireland maintained a one-to-one peg with sterling. At first, this was not an unusual position for a post-colonial country.
These challenges led us to focus our research on three questions: First: Can we articulate another framework that will do a better job than the inflation-targeting framework that’s been in place for over 25 years? To answer this, we are running a horse race among alternative frameworks for monetary policy.