A similar question applies to exchange rate shocks. Globalization appears to have altered the way in which economies adjust to movements in exchange rates. This applies both to the adjustment of real economic activity to the shock, as well as the direct pass-through of exchange rate movements to prices.
This raises the question of whether 18 to 24 months is too short a time horizon for monetary policy to deal with exchange rate shocks. On the other hand, the reduction in the persistence of inflation that we have seen under inflation targeting would suggest that it may instead be more appropriate to shorten the policy horizon.