Exactly who is targeting inflation at 2%?

Source: EconLog
by Scott Sumner

“To me, the answer to this question seems obvious. The central bank. But lots of very smart people don’t agree. MMT proponents believe that when inflation is lower than target it can be increased only with fiscal stimulus — monetary policy is ineffective. Similarly, they believe that high inflation can only be reduced with higher taxes or lower spending. On the right, some economists advocate a fiscal theory of the price level, the view that Congress determines the inflation rate through its spending and tax decisions (including actions that change the future expected path of fiscal policy).” (12/28/21)