Hard-won credibility and stable inflation expectations should not be forgotten in the search for faster growth, cautions HSBC economist John ZhuIt all changed when sterling crashed out of the Exchange Rate Mechanism (ERM) in 1992. A major reason for joining the ERM in the first place was to borrow the German Bundesbank’s inflation-fighting credibility. Monetary policy was once again in tatters. What saved the UK was nothing less than a central banking revolution.