Classification: E42, E52, E58 Keywords: Flexible inflation targeting, output gap stabilization, the foolproof way 0 1. Introduction … policy, called “flexible inflation targeting” in the literature, maintains that the primary goal of monetary policy is to … inflation variability and output-gap variability and the choice between strict and flexible inflation targeting have been …

defined, is just the interest rate. Flexible inflation targeting (FIT) is basically a sound monetary policy framework even …

- inflation targeting. In what follows, the article counters another theoretical dogma: that inflation targeting in emerging …, until very recently some emerging market economies failed to realize the benefits of full-fledged -let alone flexible …

Flexible inflation targeting cannot be rationalised using conventional welfare economic criteria, except in a single …-Friedman Optimal Quantity of Money rule and that actual inflation fully validates or accommodates core inflation. Flexible inflation … targeting is also inconsistent with the mandates of leading inflation targeters like the Bank of England and the ECB. These …