It has helped to deliver low inflation while enabling the Bank to take account of domestic and external developments in framing its monetary policy responses. No country has abandoned flexible inflation targeting, nor has any country adopted nominal income targeting or price level targeting that are sometimes suggested as alternatives.
22 ii)  Maintaining flexibility in specifying the inflation goal  Central banks make monetary policy decisions by drawing on the data available, research, models, forecasts and judgement. At a technical level it involves estimating potential output, output gaps, and the neutral interest rate, and assessing the transmission mechanisms through which interest rate changes affect output growth and inflation, and the time lags involved.