1 Macroeconomic performance improved considerably. Many central banks established their independence, and succeeded in improving the understanding on their role from politicians and the public. “Quiet Revolution” called by Alan Blinder can be understood along such a trend. 2 The theory of monetary policy also advanced considerably.
Six months ago, when monthly inflation stood at over 1.5% and the National Bank of Serbia, despite this, asserted that it was possible for this year’s inflation to be at the projected single-digit level, a host of “armchair critics” rushed to disprove this, proffering instead their own pessimistic forecasts of end2006 inflation.