Inflation Targeting

Paper Summary:

The paper explains that the approach of trying to control inflation through economic policies or monetary policies is considered inflation targeting. The paper discusses the difference between New Zealand and Canada's policies. The paper shows how the overall framework for inflation targeting has been seen to be extremely important and effective.

From the Paper:

"Inflation targeting began in New Zealand, which is truly familiar with the Asian community in terms of developing a small and open economy adjusting to a new capital account, exchange rate and deregulated financial markets. In other words, inflation targeting requires a public message of numerical intentions for price increases for the upcoming years."
"As this may be bothersome to some and may regard inflation as the plague, governments try to censor it by implementing conventional and viable economic and monetary policies. The approach of trying to control inflation through economic policies or monetary policies is considered inflation targeting."

Sample of Sources Used:

• Bernanke, B.S., Laubach, T., Mishkin, F.S. and Posen, A.S. Inflation Targeting: Lesson from the International Experience. Princeton: Princeton University Press, 1999.
• Brash, D. "Inflation Targeting: An alternative way of achieving price stability." Reserve Bank of New Zealand Bulletin, 1999, 62(1): 4-12.
• Mishkin, F.S. "Inflation Targeting." National Bureau of Economic Research, 2001: 1-7.
• Truman, E.M. "Inflation Targeting in the World Economy." Institute for International Economics, 2004:62+

More papers on Inflation Targeting:

• Essay # 2227 : "Inflation Targeting"
• Article Review # 100685 : "Inflation"
• Research Paper # 41658 : "Zero Inflation"

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