Essays published in the Federal Reserve or to adjust the inflation target of 2%

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China Economic Net News Beijing January 25 (Gulu Jing) According to %, but unable to do so, the issue will come up again this year.

Fed had earlier said in an informal setting, 2% inflation target will be around, but this goal has not been formally adopted. Supporters say the current inflation target to adjust the Federal Reserve will fight back the views of critics, who believe that the current accommodative monetary policy will make the price spiral, and adjust the inflation target can enhance the Federal Reserve to avoid deflation and falling prices on the commitment.

Bernanke before joining the Fed is an advocate of inflation targeting, and after he joined the Fed, the Fed changed the attitude of the Federal Reserve favor of the inflation target decision. When the Fed last fall within the inflation target again raised the proposal that exist within the Federal Reserve was 60 billion U.S. dollars on a variety of quantitative easing policy discussions. Federal Reserve Bank of Philadelphia President Charles - Plosser (Charles Plosser) believes that explicit inflation target to enable them to become strong, explicit inflation target helps to improve the central bank's credit rating and stable inflation expectations. Frederick Komi even former Fed official gold (Frederic Mishkin) that the adoption of inflation targeting lawmakers and the public will ease fears of inflation, the Fed made clear that they will need to make every effort to prevent runaway inflation. This new round of quantitative easing, the controversial decision to give a new reason for the Fed to adjust the inflation target, supporters said the inflation target will join forces with the Fed's low inflation rate, employment programs to support economic growth and employment.

But skeptics doubt the need for inflation targeting, they are worried about inflation targeting may not be conducive to the task of the Federal Reserve to achieve maximum employment. Some people think that inflation targeting is not very necessary, because the Fed's unofficial target is known. The new challenges this year, the inflation target again in turn put on the agenda. Some Republican members of Congress that the Fed is to fan the flames of inflation, they reduce the Fed made the right so that they focus on price stability, to eliminate the pressure of unemployment. Europe, Britain and Canada are set by the central bank's inflation target 2%, and a commitment to adjust interest rates as needed to keep inflation around 2% target. Of course, not easy to achieve this goal. Bank of England's 2% inflation target, but inflation in the UK has exceeded the 3.5% level, which makes the Bank of England had sent a letter to the British government to publicly explain this phenomenon.

these discussions on the Federal Reserve does not currently have any impact on the decision-making. Bernanke joined the Federal Reserve since 2002 has been slowly built up a formal system of inflation targets. He has finished the program a number of steps, and the cause seems to not give up now.