Neumann, M. J. M.; Hagen, Jürgen von - University of Bonn, Germany - 1995
Anglo-Saxon concept of direct inflation targeting. It is shown that monetary targeting is an effective device for anchoring … medium-term inflation expectations. At the same time, this intermediate approach permits sufficient flexibility for leaning … future ECB. Direct inflation targeting, in contrast, is likely to either prevent the ECB from gaining credibility or to …