Two main alternatives presented themselves: a system where the instrument of monetary policy was operated to achieve a desired result for inflation, without the need for an intermediate target; or a system where the exchange rate was fixed to that of another country which had a good record of maintaining low inflation.
In short, the two alternatives which satisfied the condition of providing a “nominal anchor” were inflation targeting or fixing the exchange rate (sometimes called the hard currency option). Australia went down the first path, while most of Europe (including the United Kingdom for a time) went down the second path by tying their currencies to the Deutschemark.