Inflation targeting in financially stable economies: has it been flexible enough?
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Date
2011
Journal Title
Journal ISSN
Volume Title
Publisher
Banco Central de Chile
Abstract
Description
The international financial crisis and Great Recession of 2008- 09 called for a range of significant policy measures by central banks beyond aggressive interest rate cuts. Measures have ranged from improving international coordination to purchasing local private loan portfolios and direct intervention in both foreign currency forward and spot markets. For formal inflation-targeting (IT) central banks a natural question has arisen about whether IT frameworks have been flexible enough to accommodate these diverse policy responses in such a challenging environment or whether IT restricted their room of maneuver.
Keywords
INFLACIÓN, CRISIS FINANCIERA, CRISIS ECONÓMICA 2008, BANCOS CENTRALES, TASAS DE INTERÉS