Austrian monetary theory vs. Federal Reserve inflation targeting

Source: Future of Freedom Foundation
by Richard M Ebeling

"One of the leading policy guideposts for central banks and many monetary policy proponents nowadays is the idea of 'inflation targeting.' Several major central banks around the world, including the Federal Reserve in the United States, have set a goal of two percent price inflation. The problem is, what central bankers are targeting is a phantom that does not exist. Perhaps we can best approach an understanding of this through an appreciation of some of the writings by members of the Austrian School of Economics on matters of monetary theory and policy." (08/21/17)