what is inflation targeting 
inflation targeting is a central banking policy that adjusts monetary policy to achieve a specified annual inflation rate the principle of inflation targeting is based on the belief that long term economic growth is best achieved by maintaining price stability and price stability is achieved by controlling inflation the bottom linethe wage price spiral is a perpetual cycle where rising wages create rising prices and vice versa to target inflation central banks use monetary policy the interest rate reserve requirements and open market operations to curb the wage price spiral 