NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The First Year of the Eurosystem: Inflation Targeting or Not?

Lars E.O. Svensson

NBER Working Paper No. 7598 (Also Reprint No. r2276)
Issued in August 2000
NBER Program(s):   IFM   ME

This paper is a brief evaluation of the Eurosystem's monetary-policy regime after its first year, in particular of the extent to which it is similar to inflation targeting as practiced by an increasing number of central banks. I examine the Eurosystem's goals, framework for monetary-policy decisions and communication with outsiders. Criteria for evaluation are whether the goals are unambiguous and appropriate; whether the decision framework is efficient in collecting and processing information and reaching decisions that are appropriate relative to the goals; and whether the communication is effective in motivating decisions, simplifying external evaluation and thereby improving transparency and accountability. I also consider whether the actual instrument setting has been appropriate, given the information available at the times of decision.

download in pdf format
   (168 K)

email paper

This paper is available as PDF (168 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7598

Published: American Economic Review: Papers and Proceedings, Vol. 90, No. 2, (May, 2000).

Users who downloaded this paper also downloaded these:
Bernanke and Mishkin w5893 Inflation Targeting: A New Framework for Monetary Policy?
Mishkin w7618 Inflation Targeting in Emerging Market Countries
Svensson w6545 Open-Economy Inflation Targeting
Ball and Sheridan Does Inflation Targeting Matter?
Cecchetti and Schoenholtz w14489 How Central Bankers See It: The First Decade of ECB Policy and Beyond
 
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