Is inflation targeting dead?

Recent changes in the conduct of monetary policy have prompted some to argue that the era of inflation targeting is passing. Some central banks have put more emphasis on the labour market than was previously the case and appear more willing to tolerate a period of higher inflation. But these changes have occurred without jettisoning inflation-targeting frameworks completely. Moreover, some central banks have actually firmed up their inflation targets over the past two years. In short, inflation targeting is alive and well, albeit in a more pragmatic form than was seen a decade ago.