It was first adopted in New Zealand in 1989, appeared to be successful, and has now spread to more than twenty nations. The regime is now being urged on the laggard countries that have not yet joined the bandwagon, notably the United States. The question of whether a country should adopt inflation targeting raises several issues.
The discussions in Washington were dominated by the complex challenges facing the global economy including: economic and macro-financial implications of geopolitical fragmentation; heightened financial stability risks in the wake of recent market turbulence with focus on both banks and non-banks; policy making in a high interest rate environment; and how to tackle soaring public debt.