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German unifikation hit the West German economy in a prosperous and appeared as a huge demand shock at least for the first few quarters. This combination resulted in a major increase of imports from the main trading partners of West Germany, which may have helped to cushion recessionary trends...
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whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that … flexibility of the central bank's response to macroeconomic shocks. Based on this criterion, there is no evidence to suggest that … the Bank of England's inflation target has compelled it to be more aggressive in pursuit of low inflation than the Federal …
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