Based on my previous discussion, the key question then becomes: “Is such a radical extent of innovation justified”? I will offer my thoughts on this question in the remainder of my remarks. 3. Money and the Phillips curve based model of inflation  There is no role for monetary analysis in the model of inflation determination that is centred around the New-Keynesian Phillips curve.
The announcement of an inflation target together with a promise to move the real interest rate sufficiently forcefully in response to deviations of observed inflation from target is a necessary and sufficient strategy for price stability in the model.