There have been only two periods since 1971 when things did not go that way and the rate of increase in the CPI was higher than that of wages – the second oil shock in 1980 and a surge in international commodity prices during 2007 and 2008 (Chart 11).
More grandiose schemes for the harmonisation or integration of macroeconomic monetary polices can be considered once central banks, private banking sectors and financial markets have been established and are functioning effectively in most of the participating countries. A second challenge that had to be faced was the diverse roles and functions assigned by their Governments to the various central banks in the region.