To date, moreover, the system has worked well. For a start, the target has been satisfactorily achieved.
In 1995, a colleague 3 and I wrote about Australia’s inflation target that: “…if some years from now we can look back and observe that the average rate of inflation has a ‘2’ in front of the decimal place, that will be regarded as a success.” From the vantage point of 2006, we can look back and see that the average inflation rate has indeed had a ‘2’ at the front.