This analysis contains an important misperception. Stability is not an end to itself. It is a necessary condition for growth and social justice. An environment of stable prices establishes a necessary condition for output growth by reducing uncertainties and distortions, lengthening decision-making horizons and allowing for an increase in investments and productivity gains. There is no dichotomy between price stability and economic growth, as stability paves the road for growth. Price stability allows the country to plan government actions. Moreover, it should be made clear that there is no such thing as a choice of higher sustainable growth with higher inflation. No country in the world has experienced prolonged periods of economic growth with high rates of inflation. Nonetheless, examples abound of short periods of growth driven by mistaken policies, usually inflationary, which were followed by recession and stagnation that lasted for much longer periods. The Central Bank's goal is, therefore, to contribute to economic growth by maintaining price stability. In the long run, higher productivity is the element that underpins economic growth. To achieve higher productivity growth, it is essential to increase the public sector's savings rate, thereby allowing society to invest in production as opposed to primarily financing the public sector. Aside from its effect on output growth, a permanent reduction in inflation inherently and unmistakably brings about a reduction in poverty, with the consequent social inclusion, in addition to sowing the seeds for reducing inequality.

It is a system that reduces the monetary authority's discretion, and is especially effective in eliminating the risks of political influence in policy decisions. Many countries have adopted this regime, among the developed economies, these include the United Kingdom, Canada and Sweden; while among emerging economies they include Chile, Thailand and South Africa. A key purpose of the inflation target regime is to coordinate inflation expectations. Tthat contributes to fulfilling the targets and once the targets are achieved, credibility is enhanced. Therefore, it is essential that we work towards preserving this credibility, eliminating any doubt as to the commitment to fight inflation. It is important to highlight that this fight against inflation should be carried out with no artificial measures, as the effectiveness of such measures is temporary, and they introduce short and longterm distortions in the economy. An ally in the inflation targeting regime is the floating exchange rate regime. In our country, where there is still dependence on foreign capital, this regime is adequate, as it directly absorbs part of external shocks. The exchange rate in this regime has as a purpose establishing equilibrium in the balance of payments. Its flexibility helps ensure that the demand for foreign currency will equal the supply without draining the Central Bank's international reserves. The inflation targeting regime helps to buffer the shocks hitting the economy. The flexibility of this system facilitates the absorption of these shocks, while transparency in the rules allied with explicit targets reinforce credibility in the fight against inflation.