IDEAS home Printed from https://ideas.repec.org/p/nbp/nbpmis/314.html
   My bibliography  Save this paper

Three decades of inflation targeting

Author

Listed:
  • Magda Ciżkowicz-Pękała

    (Narodowy Bank Polski)

  • Witold Grostal

    (Narodowy Bank Polski)

  • Joanna Niedźwiedzińska

    (Narodowy Bank Polski)

  • Elżbieta Skrzeszewska-Paczek

    (Narodowy Bank Polski)

  • Ewa Stawasz-Grabowska

    (University of Lodz)

  • Grzegorz Wesołowski

    (Narodowy Bank Polski)

  • Piotr Żuk

    (Narodowy Bank Polski)

Abstract

Over the last three decades, inflation targeting has become one of the most widespread monetary policy frameworks used in economies striving to conduct independent monetary policy. However, the recent global financial crisis provoked criticism of the way monetary policies had been conducted, including under an inflation targeting strategy, and called for some adjustments to the monetary policy regimes. Against this background, the report is aimed at showing that introducing changes to inflation targeting has been an ongoing process. This is illustrated by discussing the key modifications that have been applied to the inflation targeting framework over the last decades, as well as by pointing to some less commonly reviewed adjustments of the strategy as practiced by some central banks in the past. While quite a number of more recent studies on inflation targeting emphasise lessons learnt from the global financial crisis, this report looks at the full 30 years of experiences with the regime and covers rather diversified array of issues relevant for understanding the strategy, reaching also for more distant examples of its modifications. Importantly, the focus is put on strategic elements of the framework, and consequently the topics related to macroprudential policy and monetary policy instruments are discussed rather briefly.

Suggested Citation

  • Magda Ciżkowicz-Pękała & Witold Grostal & Joanna Niedźwiedzińska & Elżbieta Skrzeszewska-Paczek & Ewa Stawasz-Grabowska & Grzegorz Wesołowski & Piotr Żuk, 2019. "Three decades of inflation targeting," NBP Working Papers 314, Narodowy Bank Polski, Economic Research Department.
  • Handle: RePEc:nbp:nbpmis:314
    as

    Download full text from publisher

    File URL: http://www.nbp.pl/publikacje/materialy_i_studia/314_en.pdf
    Download Restriction: no

    More about this item

    Keywords

    Monetary Policy; Central Banking; Policy Design;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpmis:314. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zbigniew Polański). General contact details of provider: http://edirc.repec.org/data/nbpgvpl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.