Seitz and Tödter argue, counter to Svensson, that the P ¤ model provides a rationale for money-growth targeting. In particular, they argue that " money growth targeting is a special form of in ‡ation forecast targeting based on a 'limited' information set. In contrast to 'full information' in ‡ation forecast targeting, money growth targeting is likely to be more robust under changing conditions...
