Of course, this is not based on a reckless argument that we should simply do what others are doing because there is no conclusive evidence as to what the inflation target should be.
In my remarks this morning I would like to explain why the need for policymakers to enhance transparency increases at times when past policy regularities may offer less guidance, or when the inflation outlook is surrounded by exceptional uncertainty.2 In these circumstances, forward guidance may not only be helpful, but also highly effective in reducing unwarranted uncertainty.