For the EMEs, the initial experience with IT appears to be largely consistent with that observed by Bernanke et al. (1999) for the industrialized countries.7 In particular, our event-study approach confirms that the adoption of IT is not associated with an instantaneous fall in private-sector inflation forecasts, especially at longer horizons. Since measures of potential output and the natural unemployment rate are notoriously difficult to construct for EMES, we have not attempted to compute sacrifice ratios for these episodes; however, informal assessment suggests that the adoption of IT was not associated
with a marked reduction in the output costs of disinflation