Hence the attraction of inflation targeting, not only to those developed countries which adopted it in the early 1990s, but to emerging countries which, having come through the Asian crisis, now accept that a high degree of flexibility of the exchange rate is desirable.
In this world, we need some kind of framework to help in the increasingly complex (both economically and politically) task of running good monetary policy which, in the end, will be judged very largely in terms of the inflation performance. What is inflation targeting?