22  As documented by the Financial Crisis Inquiry Commission, from 1998 to 2007, AIG, through its subsidiary AIG Financial Products, built up huge indirect exposures to real-estate-backed debt by writing OTC credit protection on structured finance products, including mortgage-backed securities and collateralized debt obligations that were in many cases ultimately backed by mortgages.
If inflation persistently deviates from the target, we must explain why this has happened, what we intend to do to bring inflation back on track, and how long we expect the process to take. With the adoption of inflation targets, we have gained all the expected benefits, and even gained some that we weren’t expecting! Let me list some of them.