NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets

Lars E. O. Svensson

NBER Working Paper No. 5797 (Also Reprint No. r2157)
Issued in October 1996
NBER Program(s):   IFM   ME

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

download in pdf format
   (1815 K)

email paper

This paper is available as PDF (1815 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5797

Published: European Economic Review, Vol. 41 (1997): 1111-1146. citation courtesy of

Users who downloaded this paper also downloaded these:
Svensson w16654 Inflation Targeting
Svensson w5251 Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts
Rudebusch and Svensson Policy Rules for Inflation Targeting
Svensson w6790 Inflation Targeting as a Monetary Policy Rule
Ball w5952 Efficient Rules for Monetary Policy
 
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