James K. Galbraith takes our book, Inflation Targeting: Lessons from the In ternational Experience, as the jumping-off point for a screed against obsession with price stability (The Inflation Obsession: Flying in the Face of the Facts, January/ February 1999). He does Foreign Affairs readers a disservice by misrepresenting our argument and, as a result, leaves them uninformed about perhaps the most important current debate on the conduct of monetary policy.
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Bernanke et al. (1999) studied this question.