Many of these arguments will apply with greater force in developing economies, where the costs of poor policies have been demonstrated quite clearly. Nonetheless, I think that currency competition has played at least some role in disciplining policy in the United States and other developed countries.
The publication of this definition provides the public and the European Parliament with a clear benchmark against which to measure the success of the single monetary policy, and thereby provides for the transparency and accountability of the Eurosystem and its policy. The wording “less than 2%” clearly defines the upper limit for the measured inflation rate which is compatible with price stability.