TY  - JOUR
AU  - Svensson,Lars E. O.
TI  - Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5797
PY  - 1997
Y2  - October 1997
UR  - http://www.nber.org/papers/w5797
L1  - http://www.nber.org/papers/w5797.pdf
N1  - Author contact info:
Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
AB  - 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
ER  -