The optimal rate of inflation and the inflation target: international experience and the Hungarian perspective

Réka Juhász

MNB Bulletin (discontinued), 2008, vol. 3, issue 2, 30-37

Abstract: This article discusses the main factors considered in defining the country’s inflation target which was revised this year. Three key issues are covered: the theoretical and empirical literature dealing with the optimal level of inflation, international best practice and individual, country-specific factors that may justify deviation in any direction from best practice. The article finds that the 3% inflation target set by the MNB is consistent with all the three aspects reviewed and, consequently, contributes to the MNB achieving its primary statutory objective of price stability.

Keywords: monetary policy; optimal rate of inflation. (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:bullet:v:3:y:2008:i:2:p:30-37

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