Inflation Targeting: Should It Be Modeled as an Instrument Rule or a Targeting Rule?

Lars Svensson

No 8925, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The paper discusses how current inflation targeting should be modeled, and argues that it is better represented as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), than as a commitment to a simple instrument rule (like a Taylor rule).

JEL-codes: E42 E52 (search for similar items in EconPapers)
Date: 2002-05
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Citations: View citations in EconPapers (130)

Published as Svensson, Lars E. O. "Inflation Targeting: Should It Be Modeled As An Instrument Rule Or A Targeting Rule?," European Economic Review, 2002, v46(4-5,May), 771-780.

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Journal Article: Inflation targeting: Should it be modeled as an instrument rule or a targeting rule? (2002)
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