 Inflation targets and inflation targetingLaurence H. Meyer Review, 2001, vol. 83, issue Nov., 14 pages Abstract: The Federal Reserve currently has a dual mandate: promote price stability and full employment. In a speech presented at the University of California at San Diego Economic Roundtable, Laurence Meyer explores two policy options that would change the current framework. Meyer discusses whether the United States should (i) move to an inflation-targeting regime (placing primary emphasis on price stability) or (ii) set an explicit numerical target for inflation within the context of the current dual mandate.> For background, he describes an inflationtargeting regime, reviews various mandates> around the world, and discusses common elements and differences among the regimes.> He then explores each option. Because the first option may reduce the flexibility of monetary policy too stringently, it is determined to be undesirable. The second option would, in the author?s opinion, give added precision to an already mandated objective because it would improve transparency and accountability of the Fed, anchor inflation expectations and increase the Fed?s credibility, and institutionalize good monetary policy. The steps necessary to implement the preferred option are outlined. Keywords: Monetary policy; Inflation (Finance) (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:y:2001:i:nov.:p:1-14:n:v.83no.6 Access Statistics for this article Review is currently edited by Juan M. Sanchez More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC. |
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