Truman (a former assistant secretary of the Treasury for international affairs during the Clinton presidency) promotes inflation targeting as a sound framework for conducting monetary policy through central banks. Inflation targeting, in his formulation, consists of an emphasis on price stability, numerical targeting of prices, time horizons for reaching targets, and ongoing review of targeting. He optimistically discusses the implications of wide-scale adoption of inflation targeting and the structure and functioning of the international financial system. Annotation (c) Book News, Inc., Portland, OR (booknews.com)
