In particular, they include selecting a relevant price index; specification of the numerical value and horizon for the inflation target; definition of the range of the target variable; providing the central bank with instrument independency; ensuring the transparency and accountability of monetary policy; developing a reliable economic model of inflation.
📌 3 Key Takeaways
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Objective & Hypothesis:There has been a consensus on the importance of price stability as the overriding long term objective for monetary policy in literature.
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Key Findings & Data:Within this context, many industrial and developing economies have recently adopted explicit inflation targeting as their monetary policy regime.
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Conclusion & Impact:In particular, they include selecting a relevant price index; specification of the numerical value and horizon for the inflation target; definition of the range of the target variable; providing the central bank with instrument independency; ensuring the transparency and accountability of monetary policy; developing a reliable economic model of inflation.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Para politikası · Para politikası stratejisi · Enflasyon hedeflemesi
Özet
There has been a consensus on the importance of price stability as the overriding long term objective for monetary policy in literature. Within this context, many industrial and developing economies have recently adopted explicit inflation targeting as their monetary policy regime. Several issues must be taken into consideration if the inflation targeting regime is to be efficient. In particular, they include selecting a relevant price index; specification of the numerical value and horizon for the inflation target; definition of the range of the target variable; providing the central bank with instrument independency; ensuring the transparency and accountability of monetary policy; developing a reliable economic model of inflation.
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BLEJER, M.l.; LEONE, A.M., "Introduction and Overview", Inflation Targeting In Practice: Strategic and Operational Issues and Application to Emerging Market Economies, ed. Mario 1. Blejer, Alain lze, Alfredo M. Leone, Sergio Werlang, IMF, 2000, s.1-7
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