TY - BOOK ID - 84541672 TI - Inflation Targeting : Theory and Policy Implications PY - 1996 SN - 1462384315 1455278742 1281600067 145524029X 9786613780751 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Inflation KW - Money and Monetary Policy KW - Taxation KW - Macroeconomics KW - Production and Operations Management KW - Monetary Policy KW - Price Level KW - Deflation KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Taxation, Subsidies, and Revenue: General KW - Central Banks and Their Policies KW - Macroeconomics: Production KW - Monetary economics KW - Banking KW - Public finance & taxation KW - Inflation targeting KW - Tax incentives KW - Monetary policy frameworks KW - Monetary policy KW - Prices KW - Price stabilization KW - Potential output KW - Production KW - Banks and banking KW - United Kingdom UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541672 AB - As with many monetary policy frameworks, inflation targeting is subject to the well-known problem of inflation bias. With inflation targeting, however, the bias becomes apparent not as inflation above desired levels, but as a wedge between the announced target and observed inflation. This inconsistency could render the framework neither credible nor enforceable since the target is overshot on average. The problem can be addressed by assigning price stability as the single policy objective or by assigning a joint target for both inflation and output, provided that they are consistent. Many inflation targeting countries take the joint target approach implicitly through transparency measures which publicly assess monetary conditions in terms of potential output and output gaps. ER -