POST-WAR INFLATION TARGETING: KEY CHALLENGES

Flexible Inflation Targeting: Experiences and Challenges

I report some personal views and reflections on transparency experiences and transparency challenges following my first year and a half as Deputy Governor at Sveriges Riksbank regarding (1) flexible inflation targeting, (2) the role of transparency in inflation targeting and committee decisions on instrument-rate paths, (3) the management of interest-rate expectations, and (4) the publishing of...

(Post) Keynesian alternative to inflation targeting

While the mainstream policies can not be surpassed in the enchanted ‘optimizable’ world, (Post) Keynesians have to resign themselves to manage without magic wand in the uncertain real world. The paper discusses the monetary rules proposed in the recent Post Keynesian literature. It argues that the long-term interest rate is too imperfectly controlled for such rules being feasible. Consequently,...

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