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Inflation Targeting

Author

Listed:
  • Lars E. O. Svensson

    (Princeton University)

Abstract

Inflation targeting is a monetary-policy strategy that was introduced in New Zealand in 1990, has been very successful, and as of 2007 had been adopted by more than 20 industrialized and non-industrialized countries. It is characterized by (a) an announced numerical inflation target, (b) an implementation of monetary policy that gives a major role to an inflation forecast and has been called ‘inflation-forecast targeting’, (c) and a high degree of transparency and accountability.

Suggested Citation

  • Lars E. O. Svensson, 2007. "Inflation Targeting," Working Papers 144, Princeton University, Department of Economics, Center for Economic Policy Studies..
    • Handle: RePEc:pri:cepsud:144
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    2. Svensson, Lars E. O. & Williams, Noah, 2005. "Monetary policy with model uncertainty: distribution forecast targeting," Discussion Paper Series 1: Economic Studies 2005,35, Deutsche Bundesbank.
    3. Malin Adolfson & Stefan Las√Âen & Jesper Lind√ & Lars E.O. Svensson, 2011. "Optimal Monetary Policy in an Operational Medium-Sized DSGE Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(7), pages 1287-1331, October.
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    Keywords

    New Zealand;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • 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

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