In 1985-86, Argentina, Bolivia, Brazil and Israel introduced stabilization programs aimed at drastic and immediate reductions in inflation. Besides traditional fiscal and monetary policies, the stabilization packages included a number of heterodox elements such as wage and price freezes,...

A growing number of countries are anchoring their monetary policy through explicit inflation targeting. This policy has already scored remarkable successes in several countries, establishing central bank credibility, and reining in inflation where it had long been stubbornly high. But...