Philosophy Dictionary of ArgumentsHome
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| Inflation targeting: Inflation targeting is a monetary policy framework wherein central banks set specific, publicly announced targets for the annual inflation rate. They adjust interest rates and other monetary tools to achieve and maintain this target, aiming for price stability. This approach guides market expectations and influences economic decisions to control inflation within a predetermined range. See also Monetary policy, Monetarism, Central Bank, Money supply._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Economic Theories on Inflation Targeting - Dictionary of Arguments
Mause I 233 Inflation Targeting/Monetary Policy/Economic Theories: in many countries there is a shift away from monetary policy strategies taking explicit interim targets into account. (VsTaylor, John Brian, VsMcCallum, Bennett). Solution: in inflation targeting, central banks orientate their monetary policy directly towards inflation trends instead. VsInflation Targeting: the central banks run the risk that their monetary policy measures may take effect too late and have a procyclical effect due to time lags. Against this background, central banks must gear their monetary policy interventions to the expected inflation potential, i.e. their strategy is based on a control of the forecast inflation rate. As soon as the assumed inflation potential deviates from the formulated inflation target, monetary policy measures are required. Problem: the credibility of monetary policy depends (...) crucially on the determination of the forecast inflation rate. Solution: a combination with a Taylor-type monetary policy rule is proposed. >Taylor Rule/Taylor._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Economic Theories Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 |
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> Counter arguments against Economic Theories
> Counter arguments in relation to Inflation Targeting
Ed. Martin Schulz, access date 2024-04-29