Inflation targeting
Evans: Fed must keep rates low to protect target symmetry
Chicago Fed president sees no serious costs with ‘modestly overshooting’ 2%, but is concerned about potential damage to inflation expectations of tightening too soon
Kazakhstan proposes sweeping changes to monetary policy framework
Central bank plans root-and-branch reform of its monetary policy with move to inflation targeting to be accompanied by revamped governance, communications, economic modelling and more
San Fran Fed research analyses link between inflation targeting and growth
In an economic letter, two researchers find developing economies tend not to experience the same short-term bump in growth rates as advanced economies after adopting a target
Nothing magical about targeting 2%, Bernanke says
Former Fed chair calls for further research on ‘alternative intermediate targets’ for monetary policy during IMF panel; will work with hedge fund Citadel as adviser on range of topics
Bank of Finland paper tests price-level based forward guidance
Seppo Honkapohja and Kaushik Mitra use ‘adaptive learning’ approach to show price-level targeting can outperform inflation targeting under some circumstances
Wilkins sheds light on research into Bank of Canada regime
Senior deputy governor Carolyn Wilkins tells Central Banking how the Bank of Canada is preparing for the inflation-targeting renewal in 2016; sets out three research themes
IMF report urges review of euro timeline in Romania
Staff fear convergence could take longer than expected; encourage the transition to a ‘full-fledged’ inflation targeting regime at the central bank
Hungary adopts 'tolerance band' around inflation target
Band gives policy-makers greater flexibility and reflects willingness to tolerate temporary deviations from target; central bank cuts rates to resist negative inflation
Carney: some shocks might warrant lower inflation target
BoE governor says persistent supply shock could justify a change in the inflation target, but stresses this is a ‘pure hypothetical’; optimistic over long-term picture for productivity
RBI gets formal inflation target
Reserve Bank of India tasked with getting inflation below 6% by January and handed a 4% target to chase from then; governor retains sole responsibility for setting monetary policy
Poloz calls for ‘reinvention’ of central banking
Bank of Canada researching changes to its inflation targeting regime; Poloz asks how best how to incorporate financial stability into framework and avoid ZLB episodes
IMF eyes stronger transmission mechanism in Paraguay
Latest staff report advises the Paraguayan authorities to promote a ‘well-functioning’ interbank market and create stronger incentives for ‘de-dollarisation’ in the economy
Canadian deputy reveals new indicator of inflation expectations
Bank of Canada launches new household survey; Agathe Côté says the 'power of our new tool will truly reveal itself’ after a couple of years, but early indications are ‘promising’
Serbian central bank sees inflation climbing to target in 2015
General manager Branko Hinić discusses latest forecasts at the launch of the National Bank of Serbia’s latest inflation report; attributes low inflation in 2014 to ‘temporary’ factors
Poll: Should inflation targets be scrapped?
As advanced economies battle low inflation and interest rates remain constrained by the ZLB, should central banks rethink monetary policy orthodoxy?
Ageing population may boost inflation, BIS paper finds
Working paper challenges received wisdom that an ageing population causes disinflation, with implications for the correct calibration of monetary policy
FOMC forward guidance adds to 'market confusion', say leading US economists
The Fed lacks 'clearly formulated' normalisation strategy, paper to be published by Central Banking argues; calls for adherence to 'disciplined inflation targeting rule'
Fed signals rate hike despite drop in inflation
Minutes suggest Fed will tighten policy despite expecting inflation to remain below target for 'some time'; rate hike unlikely for 'at least the next couple of meetings'
Bank of Jamaica set for new powers in 2015
Central bank on track to assume responsibility for financial stability; will start conducting annual reviews to track ‘readiness’ for full-fledged inflation targeting
Riksbank critic becomes deputy governor
Henry Ohlsson, an economics professor who attacked the Swedish central bank for failing to reach its inflation target in a report earlier this year, is picked to replace Karolina Ekholm
Central Bank of Paraguay reduces inflation target to 4.5%
After keeping inflation around 5% for the past three years, the central bank will now aim to shackle it at 4.5% in 2015 and 2016
Robert Pringle's Viewpoint: The global finance system is in bad need of repair
Muddling through is not enough: neglect of global money can trigger political earthquakes that sweep away any chance of reasonable debate and compromise
Bank of Canada weighs inflation target increase
Consideration should be given to an inflation target that is above 2%, deputy governor argues; says lower neutral interest rate could lead to ‘non-trivial’ increase in ZLB episodes
Kocherlakota wants Fed to mimic Bank of Canada communication
Minneapolis Fed president calls for ‘symmetric’ inflation target and two-year horizon for achieving it; says FOMC should adopt Canada-style language to characterise inflation objective