New Zealand was the first to develop the framework in 1988, subsequently followed by Canada (1991), the United Kingdom (1992) and Australia and Sweden (1993).
These moves were motivated by two considerations: (1) ensuring that the inflation that had started to decelerate in the second half of the 1980s would continue to be contained; and (2) the statistical relationship between monetary stock (or exchange rates) and inflation had become unstable, making it necessary for these central banks to adjust their monetary policy frameworks.