At the same time, such policies and support as a whole must be in line with the nation’s vision, that is, an economy exploiting the full benefits of private-sector initiatives and market mechanisms. Continuing to take these policy actions in harmony with the future visions will heighten the growth expectation of the private sector and induce demand. BIS Review 29/2003  7  B.
In lowering inflationary expectations, inflation targeting can itself help reduce inflationary pressures. One can also rationalize inflation targeting through another form of economic reasoning. Some years ago many believed, along with Milton Friedman, that stabilizing the growth of the money supply would lead to stable prices.