Flexible inflation targeting may not be the best approach for central banks. New-Keynesian models suggest that optimal monetary policy follows a specific rule and that actual inflation should match core inflation. Leading inflation targeters like the Bank of England and the ECB have mandates focused on price stability, limiting the trade-off between inflation and output gap volatility. Central bank independence is constrained by financial limitations, requiring support from the Treasury to meet inflation targets. Independent monetary policy can work alongside coordinated fiscal policy. Central banks should focus on their core mandate of price stability and lender of last resort functions to maintain legitimacy and independence. The ECB's expanded mandate may threaten its independence.