To prevent the further spread of COVID-19, each country and region has continued to make strenuous efforts. In addition, as the global economy has suffered substantial damage from constrained economic activity, governments and central banks around the world have responded swiftly with large-scale measures to address the shock.
It is unclear how inflation targeting would look in more difficult economic circumstances such as the 1970s. Is inflation targeting right for the United States? The hidden question in all this, of course, is whether the United States should go to a regime of explicit inflation targeting. I am not going to try to answer that question but will make several points.