IT Framework Design Parameters

Abstract:     
This is the third chapter of a forthcoming monograph entitled On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say. It examines a number of elements in the design of an inflation-targeting framework. These include the definition of the target variable, the relevance of core measures of inflation, and the advantages and disadvantages of point targets, point targets with a band, and range targets. It then discusses the choice of a long-term inflation rate, the target horizon, and the policy horizon.

Number of Pages in PDF File: 18

Keywords: Information technology, Inflation targeting, Monetary policy, Inflation, Inflation rates, Central banks, Data collection, Data analysis

working papers series