Inflation targeting comes under fire

The theory of central bank inflation targeting has been ripped up by Harvard economist Benjamin Friedman. Speaking at the Reserve Bank of India he said inflation targeting hides other goals and impedes transparency.

Benjamin Friedman, Professor of Economics, Harvard University said, "By forcing the entire conversation to take place in terms of only one aspect of economic activity that the Central Bank and the government cares about, that is only inflation alone. So inflation targeting tends to