A critical aspect of our new framework is to allow inflation to run above our 2 percent target (so that it averages 2 percent), but we should do this only if inflation expectations are consistent with our 2 percent target.
In fact, standard econometric models still suggest that shocks in one country have very small effects on other countries. They do that because they assume that trade is the primary channel for transmitting these shocks across countries, and trade moves in line with GDP. Both these assumption are flawed.