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Origins and early development of the inflation target


  • Michael Reddell

    (Reserve Bank of New Zealand)


Explicit inflation targeting was pioneered in New Zealand in the late 1980s. This article explains how the system gradually came about. It traces some of the early influences and thinking that had, by the end of 1990, given us pretty much the structures still in use today.

Suggested Citation

  • Michael Reddell, 1999. "Origins and early development of the inflation target," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, September.
  • Handle: RePEc:nzb:nzbbul:september1999:6

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    References listed on IDEAS

    1. Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-1025, July.
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    8. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
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    12. Tamim Bayoumi & Barry Eichengreen, 1992. "Shocking Aspects of European Monetary Unification," NBER Working Papers 3949, National Bureau of Economic Research, Inc.
    13. Charles Wyplosz, 1997. "EMU: Why and How It Might Happen," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 3-21, Fall.
    14. Jeffrey A. Frankel, 1993. "On Exchange Rates," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061546, January.
    15. Viv Hall & Kunhong Kim & Robert Buckle, 1998. "Pacific rim business cycle analysis: Synchronisation and volatility," New Zealand Economic Papers, Taylor & Francis Journals, vol. 32(2), pages 129-159.
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    17. David Grimmond, 1991. "Real economy aspects of Australia - New Zealand currency integration," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 54, march.
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    Cited by:

    1. Murray Sherwin., 2000. "Institutional frameworks for inflation targeting?," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 63, December.
    2. Grant Spencer & Ozer Karagedikli, 2006. "Modelling for monetary policy: the New Zealand experience," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 69, pages 1-8., June.
    3. John Janssen, 2001. "New Zealand's Fiscal Policy Framework: Experience and Evolution," Treasury Working Paper Series 01/25, New Zealand Treasury.
    4. Scott Roger, 2009. "Inflation Targeting at 20 - Achievements and Challenges," IMF Working Papers 09/236, International Monetary Fund.

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