Although the response to the failure of Herstatt was slow, it did eventually develop market infrastructure to remove daylight payment risk. It also promoted the deepening of institutional structures such as the G-10. Crucially, this work paid off during the recent crisis. The G-10 has coordinated some of the most important central bank initiatives.
A demand shock requires a shorter horizon for the policy response, that is policy should be less patient, whereas a supply shock may call for a longer horizon, and hence more patience. Wouldn’t it make sense to allow more downward scope in the inflation aim? The aim must be crystal clear, especially when inflation is low.