Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets

Lars Svensson

No 5797, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an explicit intermediate target. Inflation forecast targeting simplifies both implementation and monitoring of monetary policy. The weight on output stabilization determines how quickly the inflation forecast is adjusted towards the inflation target. Money growth or exchange rate targeting is generally inferior to inflation targeting and leads to higher inflation variability. Commitment to commitment to

JEL-codes: E42 E58 (search for similar items in EconPapers)
Date: 1996-10
Note: IFM ME
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Citations: View citations in EconPapers (500)

Published as European Economic Review, Vol. 41 (1997): 1111-1146.

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Related works:
Journal Article: Inflation forecast targeting: Implementing and monitoring inflation targets (1997)
Working Paper: Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets (1997)
Working Paper: Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets (1996)
Working Paper: Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets (1996)
Working Paper: Inflation Forecast Targeting: Implementaing and Monitoring Inflation Targets (1996)
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