However, since the turn of the year, especially during the past several months, an increasing number of countries are shifting their monetary policy in a more restrictive direction.
I won't go into details, but if the central bank is willing to announce an inflation target, the policy responses implicit in a Taylor rule could be similar to those implicit in forward-looking, flexible inflation targeting, a policy strategy now used successfully in controlling inflation by about ten leading economies around the world (twenty, if one counts the European Central Bank, which practices a form of inflation targeting).