It is unclear how inflation targeting would look in more difficult economic circumstances such as the 1970s. Is inflation targeting right for the United States? The hidden question in all this, of course, is whether the United States should go to a regime of explicit inflation targeting. I am not going to try to answer that question but will make several points.
First, the question of whether the United States does or does not adopt a formal inflation targeting regime is not up to the Federal Reserve. The Federal Reserve Act now requires the Fed to strive for maximum employment and balanced growth, along with price stability and moderate long-term interest rates. Until the Congress changes these guidelines, the Fed will continue to pursue these goals.