TY  - JOUR
AU  - Bernanke,Ben S.
AU  - Mishkin,Frederic S.
TI  - Inflation Targeting: A New Framework for Monetary Policy?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5893
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w5893
L1  - http://www.nber.org/papers/w5893.pdf
N1  - Author contact info:
Ben S. Bernanke
E-Mail: Rita.C.Proctor@frb.gov

Frederic S. Mishkin
Columbia University
Graduate School of Business
Uris Hall 817
3022 Broadway
New York, NY 10027
Tel: 212-854-3488
Fax: 212/662-8474
E-Mail: fsm3@columbia.edu
AB  - 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.
ER  -