In the speech 'Maintaining Price Stability' given on 1 October Edward Gramlich of the Federal Reserve said on inflation targeting, "To me the verdict on theoretical grounds alone has always been a close call. I can see the advantages of transparency and commitment and of giving financial markets some indication about the central bank's inflation goals. I can also see the fear that, in practice, such regimes may in fact constrain actions in ways that could be rigid, inflexible, and perhaps