Inflation targeting has also been successfully practiced in a growing number of countries over the past 20 years, and many more countries are moving toward this framework. Empirical evidence on the performance of inflation targeting is supportive of the effectiveness of the framework in delivering low inflation.
While this may be seen as a disadvantage in the short term, in the long term, lower leverage can bring greater resilience to economic shocks and longer-term sustainability. This means, in the longer term, Māori businesses with collectively-owned assets may have a stabilising effect on the economy as a whole. This could be an advantage that attracts investment partners.