Inflation expectations have also been remarkably stable in recent years. Average long-term consensus inflation expectations have fallen from 2.8% in the 1990s (1990 to 1998) to 1.8% over the past six years. This is fully in line with our definition of price stability.
The very low levels of short-term and long-term interest rates which we are currently observing are providing substantial support to favourable financial conditions. These low levels would be unthinkable without the successful stabilisation of inflation expectations. … have also contributed to low macroeconomic volatility A further remarkable feature of the change in economic performance is the strong decline in nominal macroeconomic volatility.