Review essay The article is an assessment of inflation targeting (hereafter "IT") as a monetary strategy, which according to the author is of growing importance for the international monetary system. The author starts with a brief review of IT and how it is used today, and then goes on to compare the policy with other current policies and also with the Bretton Woods system. Inflation targeting is one possible monetary policy when having a floating exchange rate. It is currently (or more accurately at the time the article was written) in use by fourteen OECD countries, while most of the other 16 OECD countries can either be called informal inflation targeters or are members of the EMU which is close to being an inflation targeter. With 10 developing countries currently using the strategy, the IT countries constitute over 25 percent of the global economy. These numbers can be expected to rise even further in the close future. The author includes a definition of IT, which mentions commitment to price stability and formal targets for the level of inflation, as well as a trans......

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