These developments reflect the improving trend in the output gap mentioned earlier and a rise in inflation expectations. The medium- to long-term inflation expectations according to Consensus Forecast, for example, have turned to a rising trend from 2013 (Chart 4).
In the end, we all operate under similar principles, but are surrounded by different realities, circumstances and idiosyncracies. This reminds me of José Ortega y Gasset's expression in Meditations on the Quixote, “I am myself plus my circumstance”. With this, I am not proposing a return to the classical dilemma of rules versus discretion in monetary theory during the 1980s.