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Article: Inflation targeting: should the Federal Reserve in its conduct of monetary policy follow the European Central Bank and adopt some form of inflation target range? TIE asked thirteen distinguished experts.(A Symposium Of Views)
- Article from:
- The International Economy
- Article date:
- January 1, 2004
CopyrightCOPYRIGHT 2004 International Economy Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Some argue that while Fed Chairman Alan Greenspan, in office since 1987, has been an extraordinarily subtle and skillful manager, his successor may not enjoy these unique skills. Thus, the system needs eventually to agree on a series of guiding benchmarks if not a target for use in the conduct of monetary policy. Globally, such an additional tool might help in the convergence process and potentially create more stability for exchange rates.
Others counter that it is not wise to lock the system into a simplistic rule, or set of rules, particularly at a time of continued geopolitical uncertainty. Still others counter that the European Central Bank established ...