It is also my understanding that achieving the price stability target in a stable manner does not refer to a state in which the year-on-year rate of increase in the CPI simply marks 2 percent, but rather one in which people’s medium- to long-term inflation expectations are re-anchored at around  6  BIS central bankers’ speeches  2 percent – in other words, a situation in which households and firms are projected to shift their consumption and investment behavior to one that assumes around 2 percent inflation.
Fortunately, in the early stages of this last crisis, it proved possible to achieve successful international policy cooperation through the G20, the premium forum leading the international debate on world economic stability. Under the aegis of the G20, moreover, the Financial Stability Board and the Basel Committee on Banking Supervision efficiently headed up international cooperation in the sphere of financial regulation.