Are Inflation Targets Good Inflation Forecasts?

13 Pages Posted: 18 May 2008

See all articles by Marie Diron

Marie Diron

Brevan Howard Asset Management LLP

Benoit Mojon

Banque de France

Abstract

The authors show that quantified inflation objectives, which have been adopted by many industrialized countries, can be used as rule-of-thumb forecasting devices. Remarkably, they yield smaller forecast errors than widely used forecasting models and the forecasts of professional experts.

Keywords: targeting, inflation forecast, credibility, Monetary Policy

Suggested Citation

Diron, Marie and Mojon, Benoit, Are Inflation Targets Good Inflation Forecasts?. Economic Perspectives, Vol. 32, No. 2, 2008, Available at SSRN: https://ssrn.com/abstract=1134076

Marie Diron

Brevan Howard Asset Management LLP ( email )

London, SW1Y 6XA
United Kingdom

Benoit Mojon (Contact Author)

Banque de France ( email )

Paris
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
146
Abstract Views
1,145
Rank
305,088
PlumX Metrics