The symmetry of monetary action that goes with our inflation-targeting framework is the best way to achieve inflation control and thus the objectives of the Act with respect to output and employment. In addition, a monetary policy that consistently delivers low, stable, and predictable inflation is likely to provide the greatest contribution to sustained growth in output and employment.
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.