Optimal inflation targeting: further developments of inflation targeting

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Date

2007

Journal Title

Journal ISSN

Volume Title

Publisher

Banco Central de Chile

Abstract

Description

Inflation targeting was first introduced in 1990, in New Zealand. Since then it has been adopted by more than twenty countries. This period of fifteen years has seen major progress in practical monetary policy. In particular, the practice of inflation targeting has led to a more systematic and consistent internal decision process (Brash, 2000, Sims, 2002, Svensson 2001a), much more transparent communication with the private sector (Blinder and others, 2001, Fracasso, Genberg, and Wyplosz, 2003, Leeper, 2003), and an unprecedented degree of accountability. The monetary and real stability achieved is exceptional from a historical perspective (King, 2002).

Keywords

INFLACIÓN, POLÍTICA MONETARIA

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