*  *  *  Introduction I would like to discuss New Zealand’s recent inflation outcomes, the main factors accounting for them, and the outlook for monetary policy in ensuring that future average inflation over the medium term is near the 2 percent midpoint of the target band.
But we know all these, why was the EU zone not successful? As noted by Sargent and Wallace in their famous article “Some unpleasant monetarist arithmetic”, “tighter money today leads to higher inflation not only eventually but starting today”.