Furthermore, it has been proven that inflation targeting can be fully consistent with membership of ERM II once economies are sufficiently flexible and policies are largely supportive. There are a couple of instances, however, where inflation rates have risen sharply.
The framework of what has been called constrained discretion - the idea that short-run stabilization policy must be constrained by the requirement that inflation remain low and stable - has enhanced overall stability by anchoring inflation expectations while giving policymakers some leeway to respond to short-run disturbances (Bernanke, 2003).