In addition to helping achieve the important end goal of low and stable inflation, the inflation target has entailed three additional benefits. First, success in achieving the target has anchored inflation expectations, which in turn helps to keep inflation low and to stabilize the economy.
Second, an explicit inflation target has made the central bank more accountable, since it provides a concrete objective to account for. Third, this accountability for a clear target has in turn encouraged the central bank to be more transparent in its operations and communications. I'll elaborate on the role of increased transparency later in my remarks.