Optimal horizons for inflation targeting

ARTICLE - This paper investigates the problem of selecting an optimal horizon for inflation targeting in the United Kingdom. It was written by Nicoletta Batini and Edward Nelson of the Monetary Policy Committee Unit, Bank of England.

ABSTRACT - In this paper we investigate the problem of selecting an optimal horizon for inflation targeting in the United Kingdom. Since there are two key ways of thinking about an optimal horizon, we look at optimal horizons for both of these interpretations. In

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