This debate is heard much less now than it was two decades ago. But issues from the debate still crop up. One is how active should central banks be? Should they change interest rates rarely, as the European Central Bank appears to believe? Or should they change rates quite readily in response to conditions, as at the Fed?
Here's a way of looking at that question. Interest rate targeting can be thought of as monetary targeting with sterilization of shocks in the money demand function. Under pure monetary targeting, interest rates would fluctuate with shocks in spending. Under sterilized monetary targeting, interest rates would still fluctuate with shocks in spending.