If it ain't broke, don't fix it As I noted above, most observers believe that monetary policy has been excellent in recent years. Why, then, change the underlying framework for policy, especially when this change is not likely to have much of an influence on the conduct of monetary policy?
The case for moving to an explicit inflation target within our current dual mandate is that it extracts most of the potential benefits of inflation-targeting regimes without necessarily reducing the flexibility  BIS Review 65/2001  9  of policy.