A look at inflation targeting in macro economics, its characteristics and advantages.
Written in 2001; 1,285 words; 2 sources; $ 43.95
Paper Summary:
This paper offers a detailed analysis of inflation targeting. The author provides an explanation of how inflation targeting is achieved, its characteristics as well as the benefits that come along with it.
From the Paper:
"Whenever policy makers have an incentive to lower inflation by a predefine standard, that particular economy is said to be engaged in inflation targeting. In such an economy, the ideal is to conduct monetary policy that bears the incentive to bring inflation to a specified target. It should be pointed out that the monetary authority chooses a desired inflation targeted range, not a specific inflation targeted value. Monetary policy conducted in an inflation targeted economy must be transparent so that the public within the economy has easy access to all pertaining information to make adjustments if necessary. Additionally, monetary policy should maintain price stability by slightly affecting the monetary supply."
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