For example, over the past twenty years, the Federal Reserve, though rejecting the inflation-targeting label, has greatly increased its credibility for maintaining low and stable inflation, has become more proactive in heading off inflationary pressures, and has worked hard to improve the transparency of its policymaking process--all hallmarks of the inflation-targeting approach.
It has always been a difficult balancing act, based on a careful assessment of the merits of all possible policy choices in view of our mandate. Not taking action would have been irresponsible and tantamount to deflecting our singular responsibility for price stability. Conclusions Unconventional policies have been complicated to implement and to communicate.