Some would argue that this two-way classification of the options is too narrow and that monetary targeting remains a viable third option, at least for some countries. Germany is often cited as an example.
This view ignores the reality that the Bundesbank has moved a long way away from strict monetary targeting in recent years, as is evident from the way they move their policy instrument. There is evidence to suggest that prospective inflationary developments are more likely to trigger a monetary policy move than is a deviation of money supply from its target.