4  BIS central bankers’ speeches  Figure 4 Credit growth: the boom by sector (Dec 2001 = 100)  Source: RBNZ  But as booms go on, pressures build up on scarce resources, and policy interest rates tend to be raised to keep inflation in check.
To use the wonderful phrase coined by Mervyn King, the Governor-designate of the 10 inflation-targeting Bank of England, there are no "inflation nutters" heading major central banks. Moreover, virtually all (I am tempted to say "all") recent research on inflation targeting takes for granted that stabilization of output and employment is an important policy objective of the central bank.