As in Canada, this experience has been very positive: inflation targeting, working in tandem with a floating exchange rate, has generally resulted in low inflation and sustained economic growth.
Stepping back, and looking beyond these positive results, we can distinguish four key characteristics of a credible and effective monetary policy framework: clear objectives and effective tools; legitimacy; the effective use of markets; and transparency and accountability. Let me say a few words about each of these in turn. First, clear objectives and effective tools.