Why monetary base control can offer stability

There is a growing awareness that monetary policies determined by inflationtargeting regimes were responsible for breeding the vast monetary disequilibrium which was the essential condition for the recent global credit bubble and bust. But what should replace these regimes? Robert Pringle, in a recent speech to the Political Economy Club in London and in an article in this journal, observed that central banks appear to be shifting to what he described as inflation targeting plus.1 This means