Article: US tiptoes into inflation targeting.(Business Report)

BYLINE: Ethel Hazelhurst Johannesburg

US Federal Reserve Board chairman Ben Bernanke will implement innovations to his regular monetary policy report, due for release today - a move many observers see as an attempt at inflation targeting by stealth.

Inflation targets are used in many countries, including South Africa. But the Fed, unlike the SA Reserve Bank, has a dual mandate: stable inflation as well as maximum employment.

Jeff Gable, the head of research at Absa Capital, said formal inflation targeting would meet political resistance in the US because it would be seen as eroding the relative importance of maximum employment and economic ...

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