8  BIS Review 40/2008  Conclusion In a speech last week, I argued that the science of monetary policy provides a strong rationale for framing the inflation goal in terms of a specific point objective rather than a range or comfort zone.
28 My remarks today provide further elaboration about how the establishment of a firm commitment to an explicit numerical inflation objective contributes to better outcomes for both inflation and economic activity. First, I have explained the pitfalls of discretionary monetary policy and the benefits of a strong commitment to a nominal anchor. Second, I have considered how central bank communications promote such a commitment.