I used 3-1/2 percent as the estimate of q today in deriving the estimate of the disinflationary effect of productivity and the range for the short-run NAIRU. This decision obviously maximizes the potential importance of the acceleration of productivity in explaining the relationship between inflation and unemployment in this episode.
Table 2: Inflation Targets Country Target adopted Current target New Zealand March 1990 0-3% Canada February 1991 1-3% United Kingdom October 1992 2½% Sweden January 1993 1-3% Finland February 1993 2% Australia 1993 2-3% Spain Summer 1994 0-3% Source: BIS 1996 Annual Report, updated to incorporate recent changes to targets in the United Kingdom and New Zealand  The move to inflation targeting completed a significant conceptual leap from the regimes that had prevailed in the earlier decades.