Why Inflation Targeting?, Issues 2009-2086 |
Common terms and phrases
adoption dates anchor for inflation anchoring long-term inflation asset price back to target Bad Monetary Policy boom-bust cycles central bank Chile cost of inflation currency decline demand shocks deviation of inflation effects emerging economies exchange rate anchor exchange rate regime exchange rate target fixed exchange rate future inflation future rate high and volatile high inflation high rates income industrialized countries inflation and boom-bust inflation and inflation inflation and output inflation back inflation targeting Laxton long-term inflation expectations Lucas Critique monetary aggregates monetary authorities Monetary Policy Rules mortgage NAIRU nominal anchor nominal interest rates objectives output and inflation output and unemployment Output-Inflation parameter Phillips Curve policy anchor Policy Credibility policymakers potential output pressure on inflation price stability rate of inflation real interest rate reduced-form inflation equation result SRPC successful in anchoring supply shocks trade-off between output transmission mechanism typically United Kingdom variability in inflation w₁