One attraction of an explicit inflation-control target is that it allows a ready assessment of macroeconomic performance by looking at the trend of the inflation rate relative to the target range. If it looks as though the trend of inflation will push through the top of the target range, this implies that demand in the economy has been unsustainably strong.
During these nine months, the analysis will cover six areas: 1) supervision of banks; 2) harmonisation of legislation in line with the acquis communautaire under the competence of the NBS; 3) liberalisation of capital movements; 4) conduct of monetary policy and foreign exchange rate regime; 5) monetary, financial and balance of payments statistics; and 6) financial services consumer protection.