No debate is more sterile than the one on whether to reduce or to share risks. In truth, we must do both. And, in some ways, we have been doing just that. As many contend, it is human nature to only make important decisions when faced with necessity, during critical situations.
Most rich countries have found they like a 2% target, but emerging markets have used other sizes, often 3% or 4%. More recently, critics of monetary policy here in South Africa have flipped by 180 degrees. The SARB was originally accused of wrongly importing a first-world policy to South Africa.