The Inflation-Growth Relationship in SSA Inflation-Targeting Countries

Inflation and Growth Targeting

Inflation targeting needs to be supplemented by an economic growth target so that central banks will not adopt monetary policy which results in stagnation. There is no guarantee that the economy will move towards full employment by itself when the inflation rate is kept between two to three per cent. Monetary policy does not have a comparative advantage in achieving price stability. Svensson's ...

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...

The Case for Inflation Targeting in East Asian Countries

Over the past decade, a number of countries have adopted an inflation-targeting framework for the conduct of monetary policy. The majority of these have been developed countries, although Chile and Israel have also pursued some form of inflation targeting for the best part of ten years. In part spurred on by the successful economic performance of the countries that have adopted inflation target...

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