The Instrument-Rate Projection under Inflation Targeting: The Norwegian Example

Lars E.O. Svensson ()

No 75, Working Papers from Princeton University, Department of Economics, Center for Economic Policy Studies.

Abstract: The introduction of inflation targeting has led to major progress in practical monetary policy. Recent debate has focused on the interest-rate assumption underlying published projections of inflation and other target variables. This paper discusses the role of alternative interest-rate paths in the monetary-policy decision process and the recent publication by Norges Bank (the central bank of Norway) of optimal interest-rate projections with fan charts.

Keywords: Forecasts; flexible inflation targeting; optimal monetary policy. (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-for, nep-mac and nep-mon
Date: 2006-05
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Persistent link: http://EconPapers.repec.org/RePEc:pri:cepsud:75

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