References Albagli, E. and K. Schmidt-Hebbel (2004), “By How Much and Why do Inflation Targeters Miss Their Targets?”, Mimeo, Central Bank of Chile. Céspedes, L. and C. Soto (2005), “Credibility and Inflation Targeting in an Emerging Market: Lessons from the Chilean Experience”, International Finance 8 (3): 545-75. Gürkaynak R., A. Levin, A. Marder and E. Swanson (2007), “Inflation Targeting and the Anchoring of Inflation Expectations in the Western Hemisphere,” in Monetary Policy Under Inflation Targeting,  BIS Review 68/2007  5  Series on Central Banking, Analysis, and Economic Policies Vol. XI, edited by K. Schmidt-Hebbel and F. Mishkin, Central Bank of Chile. Institute for Management Development (2006), World Competitiveness Yearbook, several years. International Monetary Fund (2007), International Financial Statistics. Data on CD-ROM, April. Mishkin, Frederic S. and K. Schmidt-Hebbel (2007), “Does Inflation Targeting Make a Difference?” in Monetary Policy Under Inflation Targeting, Series on Central Banking, Analysis, and Economic Policies Vol. XI, edited by K. Schmidt-Hebbel and F. Mishkin, Central Bank of Chile. Moody’s Investors Service (2006), “Monthly Ratings List. Bank Credit Research”. Ramos-Francia, M., D. Chiquiar, and A. Noriega (2007), “A Time Series Approach to Test a Change in Inflation Persistence: The Mexican Experience”, Working Paper N° 2007-01, Banco de México. World Bank (2007), World Development Indicators 2007. April.
Christian Noyer: Monetary policy, the French economy and its outlook Introductory letter by Mr Christian Noyer, Governor of the Bank of France, to the Bank of France’s Annual Report 2006, submitted to the President of the French Republic, the President of the Senate, and the President of the National Assembly, 1 August 2007. *  *  *  I have the honour of submitting to you, as required by law, the report on the operations of the Banque de France, monetary policy and its outlook. The year 2006 was marked by robust and more balanced growth in global economic activity across virtually all regions. Thanks to this favourable international environment, the French economy saw a return to dynamic growth conducive to employment and the reduction of government deficits. This cyclical upturn should not, however, mask the structural difficulties facing the French economy, which is performing less well in all these areas than its main trading partners and which, moreover, is witnessing a further widening of its external deficit. Against this backdrop, I should like to outline a number of analyses of the growth environment, monetary policy, the state of the French economy and the main challenges that it needs to rise to in order to take advantage of globalisation and make structural improvements to growth and employment. In 2006, the European economy entered a period of sustained and balanced growth Growth in the euro area is sustained: after 2.9% in 2006, it could stand at 2.6% in 2007.