Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The experience of full-fledged inflation targeting (FFIT) countries is used here to shed light on the costs and benefits of greater monetary policy transparency for the G3. For the United States and the euro area, a hypothetical adoption of FFIT would incur a cost of less discretion while gaining the benefit of locking in a highly credible framework. The adoption of FFIT by Japan would create the risk of a further hit to credibility if policy was not able to end deflation. In practice, the G3 are already moving toward a new monetary regime that resembles FFIT in transparency, but not in accountability.

Inflation (Finance) --- Finance --- Natural rate of unemployment --- Banks and Banking --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Monetary Policy --- Central Banks and Their Policies --- Policy Objectives --- Policy Designs and Consistency --- Policy Coordination --- Price Level --- Deflation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Monetary economics --- Banking --- Inflation targeting --- Price stabilization --- Monetary policy --- Prices --- Monetary policy transparency --- Banks and banking --- Government policy --- Japan

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper describes the importance of luck, timing, and political institutions in beating inflation. The paper highlights that countries experiencing high inflation typically make several disinflation attempts, some of which succeed only temporarily. If a country trying to stabilize prices and wages is unlucky enough to be exposed to severe external shocks—for example, a decline in demand for its exports—during its disinflation, the likelihood of failure is increased. A shock such as an increase in U.S. interest rates makes failure more likely for a country with an open capital account.

Inflation (Finance) --- Finance --- Natural rate of unemployment --- E-books --- Finance: General --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Poverty and Homelessness --- Price Level --- Deflation --- General Financial Markets: General (includes Measurement and Data) --- Aggregate Factor Income Distribution --- Personal Income, Wealth, and Their Distributions --- Welfare, Well-Being, and Poverty: General --- Poverty & precarity --- Monetary economics --- International economics --- Health economics --- Personal income --- Poverty --- Hyperinflation --- Prices --- National accounts --- Income --- Income distribution --- National income --- United States