Before the Global Crisis it seemed as though the problems of monetary policy in the UK had been solved:
Monetary policy in the UK: Time for change?
David Cobham, 16 September 2013
Is the Riksbank neglecting the price-stability objective, counteracting full employment, and increasing household debt?
Lars E.O. Svensson, 9 September 2013
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?
The case for 4% inflation
Laurence Ball, 24 May 2013
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.
Is inflation targeting dead? Central banking after the Crisis
Lucrezia Reichlin, Richard Baldwin, 14 April 2013
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.
Central banks can phase in nominal GDP targets without damaging the inflation anchor
Jeffrey Frankel, 19 December 2012
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.
Monetary policy in Latin America: Where are we going?
Christian Daude, 10 December 2012
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).
How central banks contributed to the financial crisis
Michael Biggs, Thomas Mayer, 10 September 2012
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.
The death of inflation targeting
Jeffrey Frankel, 19 June 2012
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.
European summits in ivory towers
Paul De Grauwe, 26 October 2011
Imagine an army going to war. It has overwhelming firepower. The generals, however, announce that they actually hate the whole thing and that they will limit the shooting as much as possible. Some of the generals are so upset by the prospect of going to war that they resign from the army.
How are inflation targets set?
Roman Horváth, Jakub Matějů, 22 June 2011
In the last 20 years, inflation targeting has become the monetary policy of choice in about 30 industrialised and emerging economies. Inflation targeting is characterised by an explicit numerical target for inflation and the fluctuation band for inflation.
- Internationalisation, innovation, and productivity of firmsAltomonte, Aquilante, Békés, Ottaviano
- How rich nations benefit from EU membershipCampos, Coricelli, Moretti
- Predicting economic turning pointsAhir, Loungani
- The ECB should do QE via forex interventionFrankel
- The chartbook of economic inequalityAtkinson, Morelli
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Claessens, 18 April 2014
Campos, Coricelli, Moretti
Ostry, Berg, Tsangarides