rates in the recent past. in several cases, quantified inflation targeting has served as a means of achieving the central bank independence necessary to focus more effectively on controlling inflation. that is, the adoption of an inflation target is frequently part of a broader program to increase the autonomy and transparency of central bank practice. but inflation targeting is not the only means by which to achieve these ends. again, the recent experience in the united states that i have noted is an object lesson in this regard. unfortunately, the empirical evidence for industrial countries available to date generally appears insufficient to assess the success of the inflation - targeting approach with confidence. for example, it is unclear whether the announcement of quantitative inflation targets lessens the short - run tradeoff between employment and inflation, and whether it helps anchor inflation expectations. in addition, some research, controlling for other factors, fails to isolate the benefits of an inflation target with respect to the level of inflation or its volatility over time, and output does not seem to fluctuate more stably around its potential for countries that have adopted numerical targets. 5 future data may or may not produce compelling evidence, but i maintain that the case today for inflation targets in countries that already enjoy low and stable inflation rates has certainly not been proved. with respect to both its practical implementation, particularly in the united states, and the empirical evidence to date, i submit that the adoption of a numerical inflation target does not promise any obvious incremental benefits, at least in countries that have already achieved reasonable price stability. that said, a continuing commitment to price stability is certainly important, and the federal reserve has established a solid record of such commitment. conclusion based on this brief review, i conclude that, at least since the policy reform of october 1979, most observers would agree that the federal reserve has achieved generally good policy practice and outcomes. in my assessment, good policy practice cannot be safeguarded with certainty using a single rule or framework, such as inflation targeting. good outcomes ultimately depend on flexible execution of an evolving strategy and policymakers with an unwavering commitment to low and stable inflation as the foundation for maximum sustainable growth. see for example, laurence ball and niamh sheridan ( 2003 ), “ does inflation targeting matter? ” nber working papers series, no. 9577 ( march ), and e. castelnuovo, s. nicoletti - altimari, and d. rodriguez - palenzuela ( 2003 ), “ definition of price

elizabeth a duke : stabilizing neighborhoods – lessons learned from the field speech by ms elizabeth a duke, member of the board of governors of the federal reserve system, at the federal reserve real estate owned ( reo ) and vacant properties summit, washington dc, 1 september 2010. * * * good morning. i want to welcome you to the federal reserve board for this two - day summit to examine the problems associated with vacant and abandoned property and to explore innovative approaches to neighborhood stabilization. we are certain to have an informative and thoughtful discussion of these issues as our agenda is full of experts, including shaun donovan, secretary for the department of housing and urban development, who will deliver a keynote address. like you, i am anxious to get started. but before i begin, i would like to recognize and thank the speakers and panelists we will hear from during the conference. i would also like to acknowledge those who contributed to the new volume of papers the federal reserve published in conjunction with this event. many of our panelists contributed to the volume ; their articles give us a look at the issue from every angle, provide great insight, and offer promising solutions. and i would note that a number of participants and contributors are current or former members of the federal reserve consumer advisory council ( cac ). the cac has been instrumental in furthering our understanding of emerging consumer and community issues, including the topic that brings us together today. finally, i would like to thank the federal reserve staff that worked tirelessly on this project. when it became apparent in 2007 that foreclosures were reaching epidemic levels in cities nationwide, the first priority of many community organizations and their public and private partners was to identify ways to mitigate the impact of foreclosure on individual homeowners and their families. to assist in these efforts, the federal reserve deployed a number of resources : we developed tools for community organizations to use in identifying areas with high default rates so that they could target their counseling resources effectively. we helped to organize many foreclosure assistance fairs that brought lenders, counselors, and other resources to individual borrowers. we created foreclosure toolkits for communities. we launched a public information campaign to warn consumers about foreclosure rescue scams. despite these and other efforts to help mitigate foreclosures, however, we also recognized that many homeowners would not be able to remain in their homes and that, in time, the community development