Journal of Economic Perspectives: Vol. 11 No. 2 (Spring 1997)


Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter


JEP - All Issues

Inflation Targeting: A New Framework for Monetary Policy?

Article Citation

Bernanke, Ben S., and Frederic S. Mishkin. 1997. "Inflation Targeting: A New Framework for Monetary Policy?" Journal of Economic Perspectives, 11(2): 97-116.

DOI: 10.1257/jep.11.2.97


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.

Article Full-Text Access

Full-text Article (Complimentary)


Bernanke, Ben S. (Princeton U and NBER)
Mishkin, Frederic S. (Federal Reserve Bank of New York, NBER, and Columbia U)

JEL Classifications

E52: Monetary Policy
E31: Price Level; Inflation; Deflation
E58: Central Banks and Their Policies


View Comments on This Article (0) | Login to post a comment

Journal of Economic Perspectives

Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)


JEP - All Issues

Virtual Field Journals

AEA Member Login:

AEAweb | AEA Journals | Contact Us