The Whys and Wherefores of Controlling Inflation

Peter Sinclair

SBP Research Bulletin, 2009, vol. 5, 31-52

Abstract: The paper develops a case that if inflation targeting is to be adopted then monetary authority should move away from one year to longer target period for inflation. Three years is the interval of time over which the inflation effects of monetary policy decisions are almost complete. It is suggested that an annual inflation target of 4 % with the proviso that this should be achieved over successive three years period could be set by allowing a deviation of 2% around the target at the end of each three years.

Keywords: inflation targeting; core inflation (search for similar items in EconPapers)
JEL-codes: E3 E31 E52 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The Whys and Wherefores of Controlling Inflation (2008)
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