There was also a growing awareness that monetary policy plays an important role in stabilizing inflation expectations to bring about price stability. Inflation targeting, which is the monetary policy framework now adopted by  21  See also Kakino (2019, p. 93). 13  central banks in many countries, was born out of lessons learned from the Great Inflation of the 1970s.
This awareness spread gradually through both academic and central banking circles and is still widely shared today, having been further shaped by the experience of stagnation accompanied by prolonged deflation in Japan starting in the late 1990s, the Global Financial Crisis (GFC) of the 2000s and responses to the subsequent recession, and by responses to the COVID-19 pandemic starting in 2020. III.