01755cas a2200241 a 4500 AALejournalIMF007156 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455254286 1018-5941 BD-DhAAL BD-DhAAL Issing, Otmar. Lessons for Monetary Policy : What Should the Consensus Be? / Otmar Issing. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper outlines important lessons for monetary policy. In particular, the role of inflation targeting, which was much acclaimed prior to the financial crisis and since then has not lost much of its endorsement, is critically reviewed. Ignoring the relation between monetary policy and asset prices, as is the case in this monetary policy approach, can lead to financial instability. In contrast, giving, inter alia, monetary factors a role in central banks' policy decisions, as is done in the ECB's encompassing approach, helps prevent these potentially harmful side effects and thus allows for fostering financial stability. Finally, this paper makes a case against increasing the central banks' inflation target. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2011/097 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/097/001.2011.issue-097-en.xml IMF e-Library