It Framework Design Parameters
April 1, 2009
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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
Pages:
16
Volume:
2009
DOI:
Issue:
087
Series:
Working Paper No. 2009/087
Stock No:
WPIEA2009087
ISBN:
9781451872347
ISSN:
1018-5941
