After this disinflation, the Bank renewed its search for a viable nominal anchor and considered various options. 4 We tried to identify one that would be effective, straightforward to operationalize and easy to communicate, and that the public would trust.
In the late 1980s, then-Governor John Crow delivered several speeches in which he laid out an argument in favour of price stability itself as a long-run goal for monetary policy. 5 The inflation rate was then running at roughly 5 per cent. No one knew with certainty what rate best represented price stability.