Considerations in Reducing Inflation From Low to Lower Levels
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
In recent years, many countries have successfully reduced their inflation rates to relatively low levels of 2 to 3 percent. The question then arises as to whether it would be desirable to move to even lower rates of inflation. The paper examines the benefits and costs of moving from low inflation to even lower inflation by drawing together recent work on this issue. Once a country has decided to move to an even lower rate of inflation, the question then becomes whether it would be better to achieve this objective through inflation targeting or price-level targeting. The paper critically reviews the arguments for both approaches.
Series:
Working Paper No. 1998/109
Subject:
Inflation Inflation targeting Labor Monetary policy Price stabilization Prices Real interest rates Sticky prices Wage adjustments
English
Publication Date:
August 1, 1998
ISBN/ISSN:
9781451853186/1018-5941
Stock No:
WPIEA1091998
Pages:
20
Please address any questions about this title to publications@imf.org