The severity of the recession in fact strengthened the arguments in favour of inflation targeting, as the credibility of inflation targeting central banks resulted in stable inflation expectations, helping reduce the risk of deflation. Even in the current environment of loose monetary policy and substantial global liquidity, inflation expectations appear to be well anchored.
This is not to say that the framework is perfect as it is, there are refinements to be made, not least of which would include incorporating financial conditions into monetary policy deliberations, and including financial stability as part of the central bank’s mandate, because as we know, achieving price stability does not equate to achieving financial stability.