The Art of Targeting Inflation

RESEARCH - The Federal Reserve Bank of Cleveland's Central Bank Institute has published the paper "The Art of Inflation Targeting" by Lars Heikensten and Anders Vredin. The paper describes the Riksbank's transition to inflation targeting and explains how monetary policy is conducted under the new regime. The authors say they believe inflation targeting has been successful, but note that it won't eliminate many of the classical problems central banks around the world must deal with. In fact, the

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