{
  "title": "Inflation Targeting and Communication: It Pays Off to Read Inflation Reports",
  "publication": "IMF Working Papers, October 1, 2008",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-targeting-and-communication-it-pays-off-to-read-inflation-reports-22344",
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  "summary": "Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding inflation outturns.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding inflation outturns.\n- The paper presents a new methodology for the empirical evaluation of consistency in central bank communication using:\n  - a simple forward-looking policy rule, and\n  - an assessment of inflation reports.\n- Main empirical finding: 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 the 2000-05 sample."
    },
    {
      "heading": "Methodology",
      "content": "- Uses a simple forward-looking policy rule to link communication to policy actions.\n- Assesses consistency across three communication tools:\n  - inflation targets,\n  - inflation forecasts, and\n  - verbal assessments of inflation factors in quarterly inflation reports."
    },
    {
      "heading": "Sample and Data",
      "content": "- Sample period: 2000-05.\n- Countries analyzed: Chile, the Czech Republic, Hungary, Poland, Thailand, and Sweden.\n- Publication details:\n  - Pages: 42\n  - Volume: 2008\n  - Issue: 234\n  - Series: Working Paper No. 2008/234\n  - DOI: https://doi.org/10.5089/9781451870923.001\n  - Stock No: WPIEA2008234\n  - ISBN: 9781451870923\n  - ISSN: 1018-5941"
    },
    {
      "heading": "Key Findings",
      "content": "- Communication consistency: three communication tools aligned in five out of six country observations in the 2000-05 sample.\n- Reinforces that inflation-targeting frameworks can effectively explain policy actions and inflation outcomes when communication is consistent across targets, forecasts, and report narratives."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subject: Central bank policy rate, Communications in revenue administration, Economic forecasting, Inflation, Inflation targeting\n- Keywords: inflation factor, inflation forecast, inflation report, inflation target, WP\n\nSource: IMF Working Paper No. 2008/234 (DOI: https://doi.org/10.5089/9781451870923.001).\n\n---\n\n Content in this bundle\n\n- wp08234\n  - wp08234 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08234 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/inflation-targeting-and-communication-it-pays-off-to-read-inflation-reports-22344"
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    "Authors: Katerina Smídková, Viktor Kotlán, David Navrátil",
    "Published: October 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870923.001",
    "Inflation-targeting central banks have a respectable track record at explaining their policy actions and corresponding inflation outturns.",
    "The paper presents a new methodology for the empirical evaluation of consistency in central bank communication using:",
    "Main empirical finding: 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 the 2000-05 sample.",
    "Uses a simple forward-looking policy rule to link communication to policy actions.",
    "Assesses consistency across three communication tools:",
    "Sample period: 2000-05.",
    "Countries analyzed: Chile, the Czech Republic, Hungary, Poland, Thailand, and Sweden.",
    "Publication details:",
    "Communication consistency: three communication tools aligned in five out of six country observations in the 2000-05 sample.",
    "Reinforces that inflation-targeting frameworks can effectively explain policy actions and inflation outcomes when communication is consistent across targets, forecasts, and report narratives.",
    "Subject: Central bank policy rate, Communications in revenue administration, Economic forecasting, Inflation, Inflation targeting",
    "Keywords: inflation factor, inflation forecast, inflation report, inflation target, WP",
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