An important contributor to this though by no means the only one, was precisely the tipping point; the evolution of reforms in different domains had more or less come to an end, resulting in a significant reduction in uncertainty about the domestic investment environment.
Later, the degree of precision and commitment in the ECB’s forward guidance went further when the large-scale asset purchase programme was launched in 2015. Forward guidance in an environment of very low interest rates has been a success, but it was not the first instance of using transparency as a commitment device. The most important thing to be transparent about are the policy objectives.