BIS Review 64/2010  3  rich people are happier than poor people in the same country, but also why people in richer countries are not on average much happier than people in poorer countries. It’s the big fish in a little pond phenomenon. There is certainly something to this explanation. “Rich” is a relative term.
We clearly take the view that if we see a barrier, which is now in the form of inflationary pressure building up, it is better to use the first option and gently apply the brakes. This way, you gradually adjust to the optimal speed and it is safer than the second option which can throw a lot of things out of gear.