Ben S. Bernanke, Thomas Laubach, Frederic S. Mishkin, and Adam S. Posen, Inflation Targeting: Lessons from the International Experience

Abstract:     
The volume by Bernanke, Laubach, Mishkin and Posen provides a comprehensive examination of inflation targeting practices of nine countries: Germany, Switzerland, New Zealand, Canada, United Kingdom, Sweden, Israel, Australia and Spain. It contains a rich empirical material that helps to derive conclusions from the extensive international experience for more coherent monetary policy-making in the United States and in the European Monetary System. It further provides useful lessons for developing more transparent and credible monetary policies in emerging market economies, particularly in the transforming economies of Central and Eastern Europe where disinflation is the primary goal of macroeconomic stability. The attractive and somewhat unique feature of the book is the case study method, which is rarely applied, in the macroeconomic analysis. Yet, this approach adds to the substantial informative value and shows the extraordinary diversity of modern monetary policies.

Keywords: inflation targeting, monetary policy, transparency

JEL Classification: E42, E52, E58

Accepted Paper Series