Inflation Targeting: Theory and Policy Implications
As with many monetary policy frameworks, inflation targeting is subject to the well-known problem of inflation bias. With inflation targeting, however, the bias becomes apparent not as inflation above desired levels, but as a wedge between the announced target and observed inflation. This inconsiste...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1996
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Schriftenreihe: | IMF Working Papers
Working Paper No. 96/65 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | As with many monetary policy frameworks, inflation targeting is subject to the well-known problem of inflation bias. With inflation targeting, however, the bias becomes apparent not as inflation above desired levels, but as a wedge between the announced target and observed inflation. This inconsistency could render the framework neither credible nor enforceable since the target is overshot on average. The problem can be addressed by assigning price stability as the single policy objective or by assigning a joint target for both inflation and output, provided that they are consistent. Many inflation targeting countries take the joint target approach implicitly through transparency measures which publicly assess monetary conditions in terms of potential output and output gaps |
Beschreibung: | 1 Online-Ressource (22 p) |
ISBN: | 145184865X 9781451848656 |
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spelling | Green, J. H. Verfasser aut Inflation Targeting Theory and Policy Implications Green, J. H Washington, D.C International Monetary Fund 1996 1 Online-Ressource (22 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 96/65 As with many monetary policy frameworks, inflation targeting is subject to the well-known problem of inflation bias. With inflation targeting, however, the bias becomes apparent not as inflation above desired levels, but as a wedge between the announced target and observed inflation. This inconsistency could render the framework neither credible nor enforceable since the target is overshot on average. The problem can be addressed by assigning price stability as the single policy objective or by assigning a joint target for both inflation and output, provided that they are consistent. Many inflation targeting countries take the joint target approach implicitly through transparency measures which publicly assess monetary conditions in terms of potential output and output gaps Online-Ausg http://elibrary.imf.org/view/IMF001/03563-9781451848656/03563-9781451848656/03563-9781451848656.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Green, J. H. Inflation Targeting Theory and Policy Implications |
title | Inflation Targeting Theory and Policy Implications |
title_auth | Inflation Targeting Theory and Policy Implications |
title_exact_search | Inflation Targeting Theory and Policy Implications |
title_exact_search_txtP | Inflation Targeting Theory and Policy Implications |
title_full | Inflation Targeting Theory and Policy Implications Green, J. H |
title_fullStr | Inflation Targeting Theory and Policy Implications Green, J. H |
title_full_unstemmed | Inflation Targeting Theory and Policy Implications Green, J. H |
title_short | Inflation Targeting |
title_sort | inflation targeting theory and policy implications |
title_sub | Theory and Policy Implications |
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