The euro crisis: Muddling through, or on the way to a more perfect euro union?

Joshua Aizenman, 3 July 2014

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The short history of the Eurozone has been remarkable and unprecedented – the euro project has moved from the planning board to a vibrant currency within less than ten years.

Topics: Institutions and economics, International finance, Monetary policy
Tags: ECB, euro, eurozone, Eurozone crisis, Germany, GIIPS, inflation targeting, institutions

Inflation targeting vs price-level targeting: A new survey of theory and empirics

Michael Hatcher, Patrick Minford, 11 May 2014

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Price stability is the key goal of almost every central bank in the world. But does that mean stable price levels or inflation rates? The main difference between inflation targeting and price-level targeting is the consequence of missing the target.

Topics: Monetary policy
Tags: inflation targeting, price-level targeting, rational expectation, zero bound

Monetary policy in the UK: Time for change?

David Cobham, 16 September 2013

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Before the Global Crisis it seemed as though the problems of monetary policy in the UK had been solved:

Topics: Monetary policy
Tags: Bank of England, inflation targeting, QE, UK

Is the Riksbank neglecting the price-stability objective, counteracting full employment, and increasing household debt?

Lars E.O. Svensson, 9 September 2013

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How do we know whether or not the Riksbank is neglecting the price-stability objective? Could it be that the Riksbank is not only neglecting the price-stability objective but is also counteracting the Riksdag’s and the Government’s full-employment objective as well as increasing household indebtedness?

Topics: Monetary policy
Tags: inflation targeting, Riksbank

The case for 4% inflation

Laurence Ball, 24 May 2013

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Many central banks have adopted a common policy – an inflation target near 2%. These central banks include the Fed (which calls it a ‘long run goal’), the ECB (which targets inflation ‘below, but close to 2%’) and the central banks of most other advanced economies.

Topics: Monetary policy
Tags: 2%, inflation targeting

Is inflation targeting dead? Central banking after the Crisis

Lucrezia Reichlin, Richard Baldwin, 14 April 2013

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Before the Crisis, inflation targeting had become the de facto standard framework for monetary policy. Even non-inflation targeters like the ECB and the Federal Reserve built their monetary policy around the idea of commitment to a quantitative objective for medium-term inflation.

Topics: EU institutions, Macroeconomic policy
Tags: central bank independence, inflation targeting, quantitative easing

Central banks can phase in nominal GDP targets without damaging the inflation anchor

Jeffrey Frankel, 19 December 2012

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The time is right for the world’s central banks to reconsider the framework they use in conducting monetary policy. The US Federal Reserve and the ECB are still grappling with sustained economic weakness, despite years of low interest rates.

Topics: Monetary policy
Tags: inflation targeting, monetary policy, nominal GDP targeting

Monetary policy in Latin America: Where are we going?

Christian Daude, 10 December 2012

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Inflation targeting has served countries in Latin America well . They have achieved macroeconomic stability by reducing inflation and the pass-through of external shocks such as oil price and exchange rate fluctuations (cf. Mishkin and Schmidt-Hebbel 2007).

Topics: Macroeconomic policy, Monetary policy
Tags: Brazil, Central Banks, Chile, Colombia, foreign exchange, inflation targeting, Latin America, Mexico, Peru

How central banks contributed to the financial crisis

Michael Biggs, Thomas Mayer, 10 September 2012

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As numerous studies over the last two decades have shown, interest rate policies of a large number of central banks can be explained by the so-called Taylor Rule. According to this rule, which is consistent with inflation targeting, the policy rate is determined by a neutral real rate, the target inflation rate, the output gap, and the deviation of inflation from the target (or expected) rate.

Topics: Global crisis, Monetary policy
Tags: global crisis, inflation targeting, monetary policy

The death of inflation targeting

Jeffrey Frankel, 19 June 2012

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It is with regret that we announce the death of inflation targeting. The monetary regime, known affectionately as “IT” to its friends, evidently passed away in September 2009.

Topics: Macroeconomic policy, Monetary policy
Tags: inflation targeting, nominal GDP targeting

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