Abstract

It is not an easy task to find many areas in economics where almost full agreement has emerged in the last few years. However, there is today a widespread and growing consensus that the single most important goal of monetary policy should be the pursuit of price stability. Reflecting this recognition, an increasing number of central banks have been granted independence and charged with the exclusive objective of controlling inflation and preserving the stability of prices. But embracing price stability as the explicit primary goal for monetary policy does not preclude the adoption of different operating mechanisms, and the choice of monetary regime that will best serve the objective of price stability has, indeed, generated much debate.