IMF Working Papers

It Framework Design Parameters

By Douglas Laxton, Charles Freedman

April 1, 2009

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Douglas Laxton, and Charles Freedman. It Framework Design Parameters, (USA: International Monetary Fund, 2009) accessed November 13, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This is the third chapter of a forthcoming monograph entitled "On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say." It examines a number of elements in the design of an inflation-targeting framework. These include the definition of the target variable, the relevance of core measures of inflation, and the advantages and disadvantages of point targets, point targets with a band, and range targets. It then discusses the choice of a long-term inflation rate, the target horizon, and the policy horizon.

Subject: Consumer price indexes, Economic theory, Inflation, Inflation targeting, Monetary policy, Output gap, Prices, Production, Supply shocks

Keywords: Africa, Central bank, Consumer price indexes, Core CPI, CPI, Headline CPI, Inflation, Inflation expectation, Inflation rate, Inflation result, Inflation Targeting, Monetary Policy, Output gap, Rate of inflation, Reaction function, Supply shock, Supply shocks, WP

Publication Details

  • Pages:

    16

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2009/087

  • Stock No:

    WPIEA2009087

  • ISBN:

    9781451872347

  • ISSN:

    1018-5941