Inflation targeting

A central bank estimates and makes public a projected, or “target,” inflation rate and then attempts to steer actual inflation toward that target.

What Is Inflation Targeting, and How Does It Work? - Investopedia

Inflation targeting is a central banking policy that revolves around meeting preset, publicly displayed targets for the annual rate of inflation.

Inflation targeting - Wikipedia

Inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the medium-term and announces this ...

Inflation Targeting: Holding the Line - Back to Basics

The difference between the forecast and the target determines how much monetary policy has to be adjusted. Some countries have chosen inflation targets with ...

Inflation Targeting - ScienceDirect.com

Inflation targeting instead implies that the policy rate responds to much more than current inflation; namely to all information that affects the forecast of ...

The Origins of the 2 Percent Inflation Target | Richmond Fed

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

Why does the Federal Reserve aim for inflation of 2 percent over the ...

The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for ...

The History and Future of the Federal Reserve's 2 Percent Target ...

A slightly positive inflation target also leaves the Federal Reserve room to cut interest rates to stimulate the economy in the event of a ...

Inflation Targeting: A New Framework for Monetary Policy?

In other cases, the central bank or government makes explicit an "escape clause," which permits the inflation target to be suspended or modified in the face of ...

What is “average inflation targeting”? - Brookings Institution

The Fed aims at 2 percent inflation in the future, and doesn't compensate for periods where inflation is either above or (more relevant recently) below 2 ...

The Theory of Average Inflation Targeting

I will then summarize the theoretical underpinnings of what is commonly referred to as Average Inflation Targeting, or AIT for short.

Two per cent inflation target - European Central Bank

The ECB's Governing Council, after concluding its strategy review in July 2021, considers that price stability is best maintained by aiming for 2% inflation ...

Inflation forecast targeting: Implementing and monitoring inflation ...

Abstract. Inflation targeting is shown to imply inflation forecast targeting: the central bank's inflation forecast becomes an explicit intermediate target.

Understanding inflation targeting - Bank of Canada

We target inflation because a low, stable and predictable rate of inflation is good for the economy. When people and businesses feel confident ...

Fed's new inflation targeting policy seeks to maintain well-anchored ...

By adopting average inflation targeting, the Fed is communicating that 2 percent is not a ceiling for inflation and that it may let inflation ...

The inflation target | Sveriges Riksbank - Riksbanken

The Riksbank's target is for inflation, that is, the increase in the general price level, to be low and stable. The target is specified as an ...

Inflation and the 2% target | Bank of England

Inflation is a measure of how much prices of goods (such as food or televisions) and services (such as haircuts or train tickets) have gone ...

Inflation Targeting Framework - South African Reserve Bank

The inflation-targeting approach has been more successful. It has permitted a more realistic alignment between the SARB's tools and objectives. It has also ...

Inflation Targeting: A New Framework for Monetary Policy?

Inflation Targeting: A New Framework for Monetary Policy? by Ben S. Bernanke and Frederic S. Mishkin. Published in volume 11, issue 2, pages 97-116 of ...

Inflation targeting - Banco Central do Brasil

The CMN has set the inflation target at 3.00% for the period starting in January 2025, with a tolerance interval of plus or minus 1.50 percentage points, same ...