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Inflation targeting and the role of real objectives
Walsh, Carl E.
In this paper, writer focuses on two aspects of central banking – flexibility and transparency – that have been affected by monetary policy debates over the past twenty years. Because criticism of inflation targeting, at least in the United States, often focuses on the claim that an inflation targeting central bank may ignore real economic fluctuations, he directes my comments to the role real objectives play in the design of optimal monetary policy.
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