Firstly, the movements along the spectrum between what Svensson refers to as “strict” and “flexible” inflation targeting, and secondly, the evolution of the implementation framework from a quantity based regime to the current interest rate based (OCR) structure. Strict or flexible inflation targeters?
I am sure that, if this division of responsibilities had taken place, we would be now collecting the pieces of some of the Greek banks. Many argue that cases like Northern Rock failure could be avoided if supervisory and central bank functions were not separated.