The effects of inflation targeting on macroeconomic performance

Thórarinn Pétursson

Economics from Department of Economics, Central bank of Iceland

Abstract: An increasing number of countries have adopted inflation targeting since New Zealand first adopted this framework in early 1990. Currently there are 21 countries using inflation targeting in every continent of the world. This paper discusses the economic effects of inflation targeting. The main conclusion is that inflation targeting has largely been a success. The new framework has made central banks, which previously lacked credibility, able to change the way they do monetary policy towards what is commonly considered best practice. In many respects they have even been leading in creating a new benchmark for how to formulate monetary policy.

Date: 2004-06
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:ice:wpaper:wp23_thorarinn

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