Inflation targeting seems to offer a lot of advantages, especially in terms of increasing transparency and credibility of a central bank. However, the evidence of superiority of inflation targeting over other alternatives is, at best, partial. Cumulative experience of countries with inflation targeting is comparatively smaller than the historic experience of other regimes to conclude anything unambiguously.
This is both possible and necessary. Because 2  Fout! Onbekende naam voor documenteigenschap. failing to make these investments now is just postponing the inevitable. It means we will have to invest even more by 2020, in order to mitigate the same or even worse effects. When faced with such an imminent threat, inaction is reckless. It will ultimately lead to much higher costs.