The Fed has much in common with other major central banks, but of course it also differs in important ways, including its history, legal framework, and institutional structure. Whether adopting any or all of these communication strategies would be useful for the Federal Reserve is an important issue about which I hope to say more in the future.
Conclusion My objective today has been to lay out the advantages of using a framework of constrained discretion for making monetary policy. The essence of constrained discretion is the central role of a commitment to price stability.