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Under the current system, the government sets inflation targets and picks the governor.
Mr. Abe told Mr. Shirakawa that the government intended to set inflation targets together with the bank.
The fund also said that given current economic conditions, it supported the decision to delay the introduction of a plan to set inflation targets until next year.
Oil producers vastly expanded domestic spending, mostly on gold-plated infrastructure projects that set inflation roaring and left mountains of debt.
Since besting the double-digit price rises of the 1970s, most central banks have set inflation targets of around 2% per year.
Mr. Bernanke has advocated an approach to inflation-fighting that Mr. Greenspan has always resisted: publicly setting an inflation target and raising or lowering rates to meet it.
She is associated with the camp of so-called inflation doves at the Fed, who tend to emphasize the persistently high unemployment rate rather than the risks of setting off inflation.
Economic growth would accelerate until it overheated, setting off inflation.
Wholesale prices were rising in 1936, setting off inflation fears.
Mr. Bernanke is a longtime advocate of setting an inflation objective.
Increases in productivity allow companies to increase their profits without raising prices and setting off inflation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com