Central Banking

Fears over narrow inflation targets

Wolfgang Munchau criticises overemphasis on inflation targets in a column in the Financial Times.

Inflation targets have done good work in bringing down inflation and inflation expectations, he says, but with that battle won, perhaps they are no longer as useful as they were.

A strict numerical target can have an overly restrictive effect on central bank policy, he argues, suggesting that central bankers need to be able to take account of wider economic factors. There are times, he says, when

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: