Inflation Targeting in Practice: A Survey

Modelling Monetary Policy: Inflation Targeting in Practice

This paper estimates a simple structural model of monetary policy in the UK for 1963-2000, focusing on the policy of inflation targeting introduced in 1992. Our main findings are: i) the adoption of inflation targets led to significant changes in monetary policy giving greater weight to inflation; (ii) monetary policy post-1992 is asymmetric as policy makers respond more to upward deviation of ...

Is Inflation Targeting Best-Practice Monetary Policy?

natives, such as the current practices at central banks around the world. Of course, the ITF community is now large and varied. We focus mainly on the industrialized countries. One might say that we consider the role of the ITF in a low-inflation steady-state and do not address the important question of how it might help in reaching such a steady-state. In much of the paper we seek to highlight...

Inflation Targets and Inflation Targeting

There is widespread agreement that price stability (in practice, low and stable inflation) should be an objective of monetary policy. This agreement is reflected both in the mandates set for monetary policy by governments and in the practice of central banks. Several other important questions about the objectives for monetary policy are less settled: Should there be other objectives? If there a...

Inflation Targeting

Inflation targeting is a monetary-policy strategy that was introduced in New Zealand in 1990, has been very successful in terms of stabilizing both inflation and the real economy, and as of 2007 had been adopted by more than 20 industrialized and non-industrialized countries. It is characterized by an announced numerical inflation target, an implementation of monetary policy that gives a major ...

Inflation Targeting