This volume, edited by Gerald Epstein and Erinc Yeldan, develops concrete, country-specific alternatives to inflation targeting, the dominant policy framework of central bank policy that focuses on keeping inflation in the low single digits to the virtual exclusion of other key goals. Chapters focus on alternative policy goals, such as employment creation, poverty reduction and sustainable development, and also includes thematic chapters on class attitudes toward inflation and unemployment and the gender impacts of restrictive monetary policy. The authors also show that to reach policy goals beyond inflation control, central banks must use a broader range of financial policy instrument.

Inflation targeting (IT) has become the sacred cow of central banking. But its suitability to developing nations remains contested. The contributors to this volume perform the valuable service of sketching out plausible, more development-friendly alternatives. They are to be commended in particular for avoiding a one-size-fits-all approach and paying close attention to the needs of specific countries. Their proposals range from relatively minor tinkering in IT to comprehensive overhaul. A common theme is the central role of the real exchange rate, which the central banks ignore at their economies’ peril.
– Dani Rodrik, Harvard University

As the world economy is devastated by a virulent financial crisis and jobs are lost in scores, central bankers are increasingly questioned as to why they have failed to sustain stability and growth even though they told us all along that conquering inflation would be necessary and sufficient to do so – while hoping to get a pat on the back for achieving a degree of price stability unprecedented in recent times. This book provides a lot of food for thought on why. It is a powerful critique of the orthodox obsession with inflation in neglect of the two deepseated problems of the unbridled market economy – financial instability and unemployment. It is a must for all policy makers, notably in the developing world, and for the mainstream.
–  Yilmaz Akyuz, formerly of the United Nations Conference on Trade and Development

This collective volume makes a compelling case for balancing the developmental and stabilization functions of central banks. In particular, the authors emphasize that, as practiced in many successful developing countries, competitive real exchange rates can be good for growth and employment generation, and should thus be a specific focus of central bank actions. The book is a must read for those looking for a more balanced framework for central bank policies.
– José Antonio Ocampo, Columbia University, US and former Under-Secretary-General of the United Nations for Economic and Social Affairs and Finance Minister of Colombia  

Contributors include: N. Barbosa-Filho, E. Braunstein, J.A. Cordero, G. Epstein, R. Frenkel, L.M. Galindo, J. Heintz, A. Jayadev, R. Jha, J.A. Lim, L.A.T. Packard, R. Pollin, M. Rapetti, J. Ros, L. Taylor, Ç. Telli, E. Voyvoda, A.E. Yeldan, A. Zhu

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