NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inflation Targeting

Lars E.O. Svensson

NBER Working Paper No. 16654
Issued in December 2010
NBER Program(s):   IFM   ME

Inflation targeting is a monetary-policy strategy that is characterized by an announced numerical inflation target, an implementation of monetary policy that gives a major role to an inflation forecast and has been called forecast targeting, and a high degree of transparency and accountability. It was introduced in New Zealand in 1990, has been very successful in terms of stabilizing both inflation and the real economy, and has, as of 2010, been adopted by about 25 industrialized and emerging-market economies. The chapter discusses the history, macroeconomic effects, theory, practice, and future of inflation targeting.

download in pdf format
   (580 K)

email paper

This paper is available as PDF (580 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w16654

Published: “Inflation Targeting,” in Friedman, Benjamin M., and Michael Woodford, eds., Handbook of Monetary Economics, Volume 3b, Elsevier, 2011.

Users who downloaded this paper also downloaded these:
Taylor and Williams w15908 Simple and Robust Rules for Monetary Policy
Luzzetti and Ohanian w16631 The General Theory of Employment, Interest, and Money After 75 Years: The Importance of Being in the Right Place at the Right Time
Cecchetti and Hakkio w15424 Inflation targeting and private sector forecasts
Stock and Watson w16488 Modeling Inflation After the Crisis
Giannoni and Woodford Optimal Inflation-Targeting Rules
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us