The setting of inflation targets should preferably (but not compulsorily) be a joint effort between the government and  BIS Review 93/1999  2  the central bank. Inflation targeting will be most effective when economic policies are well coordinated. This coordination must be clearly spelled out and all stakeholders should be consulted, including business and the trade union movement.
They must obviously take a leading role in preparing their financial systems for this major event. BIS Review 8/1999  –3–  The South African Reserve Bank started at a very early stage in identifying all problem areas in its own information technology and communication systems.