In a single-period context, the choice of the level of the target amounts to setting a rule for monetary policy. However, in a dynamic context, their connection is less straightforward. Indeed, a deviation from a target could occur, either intended or unintended, which may impart an inflationary bias when monetary policy is conducted with discretion.
In order to address such problems of dynamic inconsistency, rule-based solutions are emphasized in literature, e.g., monetary rule (changes in money supply at a pre-determined rate) and Taylor-type rule (changes in interest rate based on deviation of growth and inflation from their potential/desired levels).