The volatility of all these variables is also lower in the inflation targeting period. Other positive indicators are the increased contracyclical nature of monetary policy (as noted inter alia in work by Ben Smit and Stan du Plessis), as well as the relative stability of inflation expectations, albeit, in the last three years, at the upper end of the target range.
This topic will be explored further in the presentation by Alain Kabundi. But it has not all been plain-sailing, and as the averages suggest, inflation has not always been within the target range. Despite the improved outcomes during the inflation targeting period, there have been significant divergences of inflation from the target range, particularly in 2002–03 and 2006–08.