In those cases it is particularly important that the policymakers ensure that policy decisions are consistent with inflation objectives and are as transparent to the public as possible”. 3 Of course, these central banks also have to show the limits of the accuracy of their forecasts.
This has become a very common feature since the trumpet charts – an expression used by Rachel Lomax – and fan charts of the Bank of England. The preference for formal models was probably not only the result of inflation targeting in itself.