Because deflation implies falling prices while the target price-level rises, the failure to end deflation in a given year has the effect of increasing what I have called the  2  Of course, the choice of 1998 as the benchmark year is somewhat arbitrary.
The members of the Governing Council regard the transparency of the decision-making process as an appropriate means by which to strengthen the democratic nature of the institution and to increase the public’s confidence in its administration. This decision is in line with the general policy towards increased transparency in the decision-making process currently being pursued at the Community level. BIS Review 34/2000  2