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Strategies for Controlling Inflation

  • Frederic S. Mishkin

This paper examines what strategies policymakers have used to both reduce and control inflation. It first outlines why a consensus has emerged that inflation needs to be controlled. Then it examines four basic strategies: exchange rate pegging, monetary targeting, inflation targeting, and the just do it' strategy of preemptive monetary policy with no explicit nominal anchor. The discussion highlights the advantages and disadvantages of each strategy and sheds light not only on how disinflation might best be achieved, but also on how hard won gains in lowering inflation can be locked in.

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File URL: http://www.nber.org/papers/w6122.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6122.

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Date of creation: Feb 1998
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Publication status: published as Frederic S Mishkin, 1997. "Strategies for Controlling Inflation," RBA Annual Conference Volume, in: Philip Lowe (ed.), Monetary Policy and Inflation Targeting Reserve Bank of Australia.
Handle: RePEc:nbr:nberwo:6122
Note: EFG ME
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