It distinguishes its approach as a two-pillar strategy that includes a focus on money growth as well as on a medium-term inflation objective. Still, its approach has much in common with that of inflation-targeting regimes. 4  Of course, even for a dual mandate, low inflation is the only long-run objective, assuming that monetary policy cannot affect the long-run levels of output and employment.
It arose as a clever solution to address the weakness of the Havana Charter – not ratified by the United States – and the resulting failure to create the International Trade Organization. It came into force with a ‘provisional’ status for nearly half a century (1948–1995), through the Protocol of Provisional Application.