And, as often happens, it was partly happenstance:
Sometimes, decisions that shape the world’s economic future are made with great pomp and gain widespread attention. Other times, they are made through a quick, unanimous vote by members of the New Zealand Parliament who were eager to get home for Christmas.
That is what happened 25 years ago this Sunday, when New Zealand became the first country to set a formal target for how much prices should rise each year – zero to 2 percent in its initial action. The practice was so successful in making the high inflation of the 1970s and ’80s a thing of the past that all of the world’s most advanced nations have emulated it in one form or another. A 2 percent inflation target is now the norm across much of the world, having become virtually an economic religion.
And in 2008 explicit and implicit inflation targeting central banks, with the exception of Australia, failed miserably!
A representative sample:
Much better if they had been explicit NGDP Level targetters to begin with!