Real GDP dipped down and then recovered in New Zealand and the United Kingdom but dipped down and only partly recovered in Canada. A subsequent analysis by Freeman and Willis (1995) focused more intensely on interest rates. The authors noted that long-term nominal rates fell in all three countries following the adoption of inflation targeting but then came back up in the mid-1990s.
The large, internationally active banks subject to the final rule on a mandatory basis – the core banks – have until October 1st of this year to adopt an implementation plan and have it approved by their board of directors.