The empirical evidence available before the financial crisis supports the view that inflation expectations are more firmly anchored in economies using inflation targeting regimes, and in general that inflation and  1  See Reichlin, Lucrezia and Richard Baldwin (2013): “Is inflation targeting dead?
Central Banking After the Crisis”, Centre for Economic Policy and Research; and Woodford, Michael (2012): “Inflation Targeting and Financial Stability”, Sveriges Riksbank Economic Review Vol 2012(1):7–32. 2  See Frankel, Jeffrey (2012): “The Death of Inflation Targeting”, www.voxEU.org, posted June 19; and Beckworth, David (2014): “Inflation Targeting: A Monetary Policy Regime Whose Time Has Come and Gone”, Mercatus Center Research Paper, July.