The 2012 statement was a significant milestone, reflecting lessons learned from fighting high inflation as well as from experience around the world with flexible inflation targeting. The statement largely articulated the policy framework the Committee had been following for some time.
King, M., Monetary policy: Theory in practice, speech delivered on 7 January 2000. cannot be deceived in the long run. If they see through the manoeuvre, they will still expect higher inflation in spite of the announced objective and adjust prices and wages accordingly. The end result is that inflation is pushed up systematically without reducing unemployment.