Conclusion And that is my conclusion for developing countries also. Clearly, inflation targeting is no panacea. It is no silver bullet. It is certainly no guarantee against monetary policy error. In many respects, it is a mistake to think of inflation targeting as some kind of new approach to monetary policy.
This, together with the fact that some countries were already highly indebted, created a vicious circle. And so the sovereign debt crisis emerged. In June 2012, European leaders announced their intention to create a European banking union. But you may ask: why would a Union change things? Well, for a number of reasons.