TY  - JOUR
AU  - McCallum,Bennett T.
TI  - Inflation Targeting in Canada, New Zealand, Sweden, the United Kingdom, and in General
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5579
PY  - 1998
Y2  - February 1998
UR  - http://www.nber.org/papers/w5579
L1  - http://www.nber.org/papers/w5579.pdf
N1  - Author contact info:
Bennett T. McCallum
Tepper School of Business, Posner 256
Carnegie Mellon University
Pittsburgh, PA 15213
Tel: 412/268-2347
Fax: 412/268-6830
E-Mail: bm05@andrew.cmu.edu
AB  - This paper begins with a description of the inflation targeting arrangements currently in place in the four above-mentioned countries and their performance records through mid-1995 are reviewed.  It is argued, however, that too little time has passed for conclusions to be drawn, so that tentative evaluations of inflation targeting need to be based on theoretical analysis and more generalized historical experiences.  Accordingly, two alternative rationalizations are considered, one stemming from the literature on dynamic inconsistency and the other based on more pragmatic considerations.  In addition, it is asked whether some other nominal magnitude might be preferable as a target variable and the issue of growth-rate versus growing-level target paths is addressed.
ER  -