How Flexible Can Inflation Targeting Be and Still Work?
Kenneth Kuttner () and
Adam Posen ()
Authors registered in the RePEc Author Service: David Weil ()
No 2011-10, Department of Economics Working Papers from Department of Economics, Williams College
This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that of the Federal Reserve, which does not have such a target. The empirical analysis uses the speed of inflation forecast convergence, estimated from professional forecasters' predictions at successive forecast horizons, to gauge the perceived flexibility of the central bank's response to macroeconomic shocks. Based on this criterion, there is no evidence to suggest that the Bank of England's inflation target has compelled it to be more aggressive in pursuit of low inflation than the Federal Reserve.
JEL-codes: E42 E58 E65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-dge and nep-mac
Date: 2011-09, Revised 2011-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://web.williams.edu/Economics/wp/KuttnerPosen ... ationTargetingBe.pdf Full text (application/pdf)
Working Paper: How Flexible Can Inflation Targeting Be and Still Work? (2011)
Working Paper: How flexible can inflation targeting be and still work? (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wil:wileco:2011-10
Ordering information: This working paper can be ordered from
The price is Free.
Access Statistics for this paper
More papers in Department of Economics Working Papers from Department of Economics, Williams College Williamstown, MA 01267. Contact information at EDIRC.
Bibliographic data for series maintained by Stephen Sheppard ().