Originally published: 2007.

Includes bibliographical references and index.

How did we get here? -- Fundamental issues in the conduct of monetary policy -- What should central banks do? -- The transmission mechanism and the role of asset prices in monetary policy -- The role of output stabilization in the conduct of monetary policy -- Can central bank transparency go too far? -- Is there a role for monetary aggregates in the conduct of monetary policy? -- Rethinking the role of NAIRU in monetary policy : implications of model formulation and uncertainty -- Monetary policy strategy in advanced economies -- Introduction to part II -- Central bank behavior and the strategy of monetary policy : observations from six industrialized countries -- Inflation targeting : a new framework for monetary policy? -- International experiences with different monetary policy regimes -- Why the federal reserves should adopt inflation targeting -- Monetary policy strategy in emerging market and transition economies -- Introduction to part III -- Inflation targeting in emerging market countries -- Monetary policy strategies for Latin America -- Monetary policy strategies for emerging market countries: lessons from Latin America -- Inflation targeting in transition economies : experience and prospects -- A decade of inflation targeting in the world : what do we know and what do we need to know? -- The dangers of exchange-rate pegging in emerging market countries -- The mirage of exchange-rate regimes for emerging market countries -- What have we learned? -- Introduction to part IV -- Everything you wanted to know about monetary policy strategy, but were afraid to ask.