Forget inflation targeting

Milton Friedman's statement that "inflation is always and everywhere a monetary phenomenon" was both enlightening and a curse to future generations.

It was enlightening in that it instructed contemporaries (in the 1970s) that the worst peacetime inflation in history had its seeds in serious monetary disorder and that for this to be corrected far-reaching reform of the process of monetary-policy making would be essential.

The statement was a curse in that it stimulated a misleading perception tha