Furthermore, in February 2012, almost at the same time that the Fed adopted an official inflation goal, the Bank introduced “the price stability goal in the medium to long term” and announced that it would set a goal in terms of the year-on-year rate of change in the CPI of 1 percent for the time being.
In that pact, countries agreed to balance their budgets, restore financial stability, stabilise the exchange rate at realistic levels and enhance mutual cooperation. Along with the carrot, thus came the stick. In many ways this is similar to the approach followed in later years by the International Monetary Fund in its macroeconomic adjustment programs.