Inflation Targeting: A New Framework for Monetary Policy?

Ben Bernanke and Frederic Mishkin

Journal of Economic Perspectives, 1997, vol. 11, issue 2, 97-116

Abstract: In recent years, a number of industrialized countries have adopted a strategy for monetary policy known as 'inflation targeting.' The authors describe how this approach has been implemented in practice and argue that it is best understood as a broad framework for policy, which allows the central bank 'constrained discretion,' rather than as an ironclad policy rule in the Friedman sense. They discuss the potential of the inflation-targeting approach for making monetary policy more coherent and transparent and for increasing monetary policy discipline. The authors' final section addresses some additional practical issues raised by this approach.

JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 1997
Note: DOI: 10.1257/jep.11.2.97
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Citations: View citations in EconPapers (727)

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Working Paper: Inflation Targeting: A New Framework for Monetary Policy? (1997)
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