Inflation Targeting: Some Extensions

Lars Svensson

Scandinavian Journal of Economics, 1999, vol. 101, issue 3, 337-361

Abstract: Previous analyses of the implementation of inflation targeting are extended to monetary policy responses to different shocks, consequences of model uncertainty, and effects of interest rate smoothing and stabilization. Model uncertainty, output stabilization, and interest rate stabilization or smoothing all call for a more gradual adjustment of the conditional inflation forecast toward the inflation target. The conditional inflation forecast is the natural intermediate target during inflation targeting. The optimal way of reacting to shocks is hence to check how they affect the inflation forecast and then take the appropriate action. JEL classification: E42; E52; E58

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (134)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00160

Related works:
Working Paper: Inflation Targeting: Some Extensions (1997)
Working Paper: Inflation Targeting: Some Extensions (1997)
Working Paper: Inflation Targeting: Some Extensions (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:101:y:1999:i:3:p:337-361

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().