Specifically, in 1974, the Bundesbank began to implement a policy of setting a target in terms of monetary aggregates, supported by a transparent communication of this target to guide the expectations of people and firms, with the aim of tempering the uncertainty caused by the end of Bretton Woods (O. Issing, ‘Why Did the Great Inflation Not Happen in Germany?’ Federal Reserve Bank of St. Louis Review, March/April, Part 2, 2005).
Germany’s success in combating inflation was not entirely due to pursuing monetary objectives, which moreover were not always achieved; to name but one, the lack of a wage-indexation system was an important factor, as was the revaluation of the exchange rate, which is after all linked to monetary policy.