The improved credibility of the central bank's commitment to keep inflation low and stable should, in turn, allow it to deliver
better inflation outcomes with fewer short - run costs to economic growth and employment.
Not exact matches
A case can be made that the first public exposition of the
inflation target came in 1993 in a speech by then Governor Fraser (1993): «My own view is that if
inflation could be held to an average of 2 — 3 per cent over a period of years, that would be a
good outcome».
But managing a terms of trade event of this size without either a major increase in
inflation or a major crash in the economy would be a much
better outcome than achieved in previous episodes.
The
best outcome would be a mild equity correction or bear market that coincided with a stable or falling rate of
inflation.
But a period of more moderate growth would be a
better outcome than either allowing
inflation to go unchecked or expecting the major economies to do all the heavy lifting.
We will expect the figures to have an influence on the EUR, with any hint of a pickup in
inflation and stable economic growth through the 1st quarter the
best outcome for the EUR and those looking for Draghi to begin shifting on policy towards interest rates.
The
best outcome would be a mild equity correction or bear market that coincided with a stable or falling rate of
inflation.