Inflation targeting
IMF paper examines emerging market counter-cyclical monetary policy
Emerging markets should target inflation for its counter-cyclical benefits as well as output variability, researchers find
Carney says inflation targeting is worth salvaging
Bank of Canada chief says central banks’ limitations were revealed by the financial crisis, but inflation targeting is still worthwhile when supplemented by forward guidance and flexibility
Norges Bank governor outlines Norwegian model for stability
Øystein Olsen tells Harvard audience of Norway's fiscal rule and inflation-targeting - but warns the system has yet to be seriously tested
Michael Woodford backs combining nominal GDP and inflation target
Leading monetary policy theorist advocates immediate fiscal transfer to the public, funded by central bank purchase of government debt, coupled with adoption of nominal GDP target
Bundesbank researchers test if higher inflation could ease public debt burden
Paper finds 'minor effect' on public debt from a raised inflation target, and would only be felt over a long time-frame
Nominal GDP dismissed as viable policy target in Central Banking debate
Former Bank of England officials argue against adopting a nominal GDP target for monetary policy; economist Gabriel Stein brands it ‘absolute madness’
Bank of England handed new remit
UK budget embeds flexibility in MPC remit; suggests the committee adopts explicit forward guidance as a new policy tool; looks to expand funding for lending scheme
Vietnam central bank needs clearer mandate not independence
The Vietnamese government should worry less about meeting calls for more legal independence for the State Bank of Vietnam and think more about relieving the central bank from some of its wide-reaching responsibilities, says new Central Banking Journal…
RBI governor defends 3% inflation target
Duvvuri Subbarao says India’s high inflation in recent years does not represent a ‘new normal’; rejects upping the central bank’s 3% target
Central banks need to be wary of ‘new’ monetary policy trends
Policy-makers are reappraising the role of independent central banks pursuing inflation targets. Bernd Braasch1 encourages them to use sound evidence to inform their judgements
Abe picks Kuroda to head Bank of Japan
Haruhiko Kuroda nominated next governor of the Bank of Japan; markets respond positively but commentators warn Kuroda’s dovish stance could amount to debt monetisation
Colombian paper finds flaws in inflation forecasting
Research by the Central Bank of Colombia says many central banks have scope to improve the accuracy of their inflation forecasts
Robert Pringle’s Viewpoint: Assessing Masaaki Shirakawa’s legacy
The policies of outgoing Bank of Japan governor, Masaaki Shirakawa, have brought economic stability to Japan and are likely to be viewed favourably by future generations
BoJ target leaves Japan inflation swap market unmoved
Doubling Japan's inflation target has had a limited impact on the domestic inflation market
ECB’s Praet warns against ‘hazardous’ policy experiments
Executive board member says he is ‘very sceptical’ of suggestions to raise the inflation target, but cautions against complacency over policy toolkits
Majority support an inflation target, poll finds
Almost two-thirds of participants in poll say inflation-targeting central banks should stick with current policy; Mark Carney lauds the unconventional measures a flexible framework allows
IMF research finds inflation targeting can dampen risk premiums
Working paper suggests inflation targeting reduces a country’s risk premium, although this effect is stronger for emerging markets and where inflation targeting is successful in stabilising prices
Bank of England unwavering in support for inflation target
MPC members hold interest rate and asset purchases to keep inflation on course to reach 2% in medium term; King condemns replacing price stability with economic growth target
BoJ formally asked to double inflation target
Japanese government pressures Bank of Japan to increase short-run inflation target to 2%; no action likely before next monetary policy meeting on January 21–22
Bank of Russia increases inflation target for 2013
Guidelines for monetary policy in Russia over the next three years include revised inflation goal for 2013; inflation overshoots target band in 2012
Philippines’ inflation target will drop in 2015
Goal will decrease from 4% to 3% in line with the government’s desire for ‘disinflation’ and higher economic growth
Carney and BoE chief economist clash on inflation targeting
Bank of England governor-elect Mark Carney suggests inflation target could be sacrificed for nominal GDP goal; Spencer Dale questions whether this would be effective or viable
Bank of Uganda annual report emphasises adaptation to tough times
Annual report for 2011/12 suggests move to ‘inflation targeting lite’ framework helped bring a spike in inflation under control
Norges Bank’s Olsen says inflation targeting is 'more flexible'
Firmly anchored inflation expectations allow economic stability to be considered when setting interest rates