It Framework Design Parameters

April 1, 2009

Preview Citation

Format: Chicago

Douglas Laxton, and Charles Freedman. It Framework Design Parameters, (USA: International Monetary Fund, 2009) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This is the third chapter of a forthcoming monograph entitled "On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say." It examines a number of elements in the design of an inflation-targeting framework. These include the definition of the target variable, the relevance of core measures of inflation, and the advantages and disadvantages of point targets, point targets with a band, and range targets. It then discusses the choice of a long-term inflation rate, the target horizon, and the policy horizon.

Subject: Consumer price indexes, Economic theory, Inflation, Inflation targeting, Monetary policy, Output gap, Prices, Production, Supply shocks

Keywords: Africa, Central bank, Consumer price indexes, Core CPI, CPI, Headline CPI, Inflation, Inflation expectation, Inflation rate, Inflation result, Inflation Targeting, Monetary Policy, Output gap, Rate of inflation, Reaction function, Supply shock, Supply shocks, WP

Publication Details

Pages:

16
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/087
Stock No:

WPIEA2009087
ISBN:

9781451872347
ISSN:

1018-5941

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