P248 inflation targeting(2)

A broader mandate: Why inflation targeting is inadequateConcluding remarksGood macroeconomic policymaking will always involve accepting complex trade-offsrather than living in the best of all possible worlds. Probably the best we can hope for isthat those implementing policy can learn from the mistakes of the past. They have manyrecent mistakes to learn from.ReferencesBall, L and N Sheridan (2004), “Does Inflation Targeting Matter?”, in B Bernanke andM Woodford (eds.), The Inflation-Targeting Debate, University of Chicago Press.Bernanke, B (2003), “Some Thoughts on Monetary Policy in Japan”, speech to theJapan Society of Monetary Economics, Tokyo.Barro, R and D Gordon (1983). “A Positive Theory of Monetary Policy in a NaturalRate Model”, Journal of Political Economy 91, 589-610.Eichengreen, B (1996), Golden Fetters: The Gold Standard and the Great Depression,1919-1939, NBER Series on Long-Term Factors in Economic DevelopmentFriedman, M (1968), “The Role of Monetary Policy,” The American Economic Review58, 1-17.Gurkaynak, R, A Levin, A N. Marder and E Swanson (2007). “Inflation Targetingand the Anchoring of Inflation Expectations in the Western Hemisphere,” EconomicReview, Federal Reserve Bank of San Francisco, 25-47.Keynes, J M (1924), A Tract on Monetary Reform.Kydland and Prescott (1977), “Rules Rather than Discretion: The Inconsistency ofOptimal Plans,” Journal of Political Economy 85, 473-492.111