In this sense, inflation targeting cannot be blamed for failing to prevent the financial crisis.7 Financial stability concerns should be addressed with macroprudential tools, generally of a regulatory nature. Some of these instruments should be given to central banks to be used as complement to monetary policy as has been the case in several countries following the crisis.
Employment has increased impressively over the past six years since its low point in early 2010, and the unemployment rate has hovered near 5 percent since August of last year, close to most estimates of the full-employment rate of unemployment. The economy has done less well in reaching the 2 percent inflation rate.