Stress-testing the monetary regime

In our interview with Milton Friedman on his 90th birthday in this issue, we ask him for his verdict on the current dominant model of monetary policy-making - independent central banks committed to inflation targets. He replies that it is too early to tell: the model has only been up and running for ten years or so, after all.

This comment raises a number of questions: is it actually necessary for a model to last a long time for it to be judged a success? In a world in constant flux, why should

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