On the other hand, it would be useful to use a measure for inflation that smoothes over transient shocks and that is not subject to potential problems with seasonal adjustment. For that reason, I would favor a year-over-year measure of the inflation rate  15  See Akerlof, Dickens, and Perry (1966).
16  See Fuhrer and Sniderman (2000) for a series of papers on the implications of a zero nominal bound for the nominal interest rate for setting inflation targets. The paper by Reifschneider and Williams in that volume provides some support for the one percentage point cushion I have suggested.