After a long history of high and volatile inflation, the Central Bank of Chile began implementing its monetary policy in the early 1990s by announcing yearly targets for inflation. This new framework was the first step toward a full-fledged inflation-targeting setup, although the Central Bank continued to pursue an explicit objective for the exchange rate. One year before the first announced inflation target in 1990, the Central Bank was granted autonomy through a special law that explicitly states that the main objective of monetary policy is to ensure price stability.