Moving targets? Inflation targeting frameworks,1990–2025

Claudio Borio and Matthieu Chavaz

BIS Quarterly Review, 2025

Abstract: Recent and upcoming reviews of monetary policy frameworks have been putting the spotlight on the evolution of inflation targeting. This article provides context by using a new database of changes to the inflation targeting frameworks of 26 central banks since 1990. We use the data to track changes in the frameworks' flexibility in terms of the specification of the inflation target and the role of other objectives, ie employment (or output) and financial stability. While the specification of the numerical targets has become stricter (eg points rather than ranges), greater flexibility has taken the form of less strict / longer horizons to achieve them and more weight on other objectives, especially employment/output. These trends are typically more pronounced in advanced economies and have widened differences with their emerging market peers.

JEL-codes: E12 E3 E52 (search for similar items in EconPapers)
Date: 2025
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