Up to now, I have discussed how certain limits in knowledge and forecasting ability have influenced the design of central banks’ strategies. I would now like to consider the other side of the matter, namely how does the choice of a certain strategy influence the forecasting exercises carried out at the respective central banks?
It seems that the introduction of an inflation targeting strategy has spurred on the efforts which those central banks have made with regard to formal forecasting procedures. Of course, the respective central banks were always interested in forecasting. However, inflation targeting has brought a new  1  See ECB, Monthly Bulletin, January 1999, P. 50.