... Pearson Canada Inc.18 - 1Chapter 18What Should Central Banks Do? Monetary Policy Goals, Strategyand Tactics Copyright 2011 Pearson Canada Inc.18 - 10Inflation Rates and Inflation TargetsFigure ... rate of a monetary aggregate.• Central bank then is accountable for hitting the target•Monetary targeting was adopted by several countries: Germany, Switzerland, Canada, the U.K., Japan ... Canada Inc.18 - 13Advantages and Disadvantages to the U.S Approach•Does not rely on a stable money-inflation relationship•Discourages overly expansionary monetary policy•Lack of transparency•Uncertainty...