Inflation Targeting and Communication: It Pays Off to Read Inflation Reports

 
Author/Editor: Bulir, Ales ; Smídková, Katerina ; Kotlán, Viktor ; Navrátil, David
 
Publication Date: October 01, 2008
 
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Summary: Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding inflation outturns. Using a simple forward-looking policy rule and an assessment of inflation reports, we provide a new methodology for the empirical evaluation of consistency in central bank communication. We find that the three communication tools-inflation targets, inflation forecasts, and verbal assessments of inflation factors contained in quarterly inflation reports-provided a consistent message in five out of six observations in our 2000-05 sample of Chile, the Czech Republic, Hungary, Poland, Thailand, and Sweden.
 
Series: Working Paper No. 08/234
Subject(s): Inflation targeting | Central banks | Economic forecasting | Monetary policy | Transparency | Emerging markets | Chile | Czech Republic | Hungary | Poland | Thailand | Sweden

Author's Keyword(s): Inflation targeting | forecasting | monetary policy | transparency | emerging markets
 
English
Publication Date: October 01, 2008
Format: Paper
Stock No: WPIEA2008234 Pages: 42
Price:
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