@techreport{NBERw5893,
 title = "Inflation Targeting: A New Framework for Monetary Policy?",
 author = "Ben S. Bernanke and Frederic S. Mishkin",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5893",
 year = "1997",
 month = "July",
 URL = "http://www.nber.org/papers/w5893",
 abstract = {In recent years a number of industrialized countries have adopted a strategy for monetary policy known as `inflation targeting.' We 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.  We discuss the potential of the inflation-targeting approach for making monetary policy more coherent and transparent, and for increasing monetary policy discipline.  Our final section addresses some additional practical issues raised by this approach.},
}