Inflation Targeting is Neither Necessary Nor Sufficient

Tatom, John (2006): Inflation Targeting is Neither Necessary Nor Sufficient. Published in: Research Buzz , Vol. 2, No. 5 (2006): pp. 1-2.

Abstract

Proponents of inflation targeting suggest that countries using this tool understand better, their responsibility for price stability and are able to better communicate their superior policy target. Thus, they also should achieve lower inflation. Fed Chair Ben Bernanke is a strong proponent of inflation targeting, conducting monetary policy to achieve an announced target. This article discusses whether inflation targeting is necessary.

• Item Type: MPRA Paper
• Language: English
• Keywords: Inflation targeting; monetary policy
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy (Targets, Instruments, and Effects)

References

Bernanke, Ben S. and Michael Woodford, editors, The Inflation Targeting Debate, National Bureau of Economic Research Studies in Business Cycles, University of Chicago Press, 2005.

Eijffinger, Sylvester C.W. and Petra M. Geraats, European Journal of Political Economy, Volume 22, Issue 1, March 2006, Pages 1-21.

International Monetary Fund, “Does Inflation Targeting Work in Emerging Markets?” World Economic Outlook, Chapter IV, September 2005, pp. 161-86.

Poole, William, Inflation Targeting, Federal Reserve Bank of St. Louis Review, 88(3), May/June 2006, pp. 155-64.

Schott, Francis, “Inflation Targeting,” Business Economics, January 2005, pp. 46-9.