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Inflation targeting: dead or alive?

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  • BARBALAU, Adelina Georgiana

Abstract

The present paper investigates how the global financial crisis has prompted the need to revise monetary policy in general and inflation targeting in particular, with the final purpose of establishing whether the crisis has rendered inflation targeting obsolete or has only strengthened its position as the central banking orthodoxy of our days. Departing from an outline of inflation targeting fundamentals and a brief history of monetary policy, the paper explores the merits of and criticism on inflation targeting from a theoretical as well as practical perspective. Finally, conclusions are drawn upon the analysis and prospects for the future, including proposed successors of inflation targeting, are briefly explored.

Suggested Citation

  • BARBALAU, Adelina Georgiana, 2012. "Inflation targeting: dead or alive?," Romanian Distribution Committee Magazine, Romanian Distribution Committee, vol. 3(3), pages 41-49, September.
  • Handle: RePEc:rdc:journl:v:3:y:2012:i:3:p:41-49
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    References listed on IDEAS

    as
    1. Patrick A. Imam & Eleonara Granziera & Norbert Funke, 2008. "Terms of Trade Shocks and Economic Recovery," IMF Working Papers 2008/036, International Monetary Fund.
    2. Laurence Ball & N. Gregory Mankiw, 1995. "Relative-Price Changes as Aggregate Supply Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 161-193.
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    More about this item

    Keywords

    inflation targeting; monetary policy; central banks;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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