CNB paper shows power of inflation targeting

cnb

A working paper published by the Czech National Bank (CNB) on August 13 demonstrates how inflation targeting can lead to the counterbalancing of debt-financed government spending shocks.

Where non-targeting banks would keep monetary policy constant in response to such shocks, those operating inflation target frameworks tend to stop accommodative policy, and offset the shocks with higher interest rates, the paper says.

Authors, Michal Franta, Jan Libich and Petr Stehlík, demonstrate that there

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

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 individual account

.