Do central banks need to abandon their current monetary framework to follow the approach I have outlined? I believe not. In practice, both the ECB’s second pillar and the Bank of Japan’s long-term perspective can lend themselves to – and in fact already capture elements of – this new approach.
The same might be true for a flexible inflation targeting framework as it is currently followed by the Reserve Bank of Australia. I hope that the academic scholars, policymakers and market participants that are joining us today for this workshop, will help us gain further insights into these important issues. BIS Review 154/2009  3