There is now a remarkably strong consensus among academics and professional
economists that central banks should adopt explicit inflation targets and that all key
monetary policy decisions, especially those concerning interest rates, should be made with
a view to ensuring that these targets are achieved.
This book provides a comprehensive review of the experience of inflation
targeting since its introduction in New Zealand in 1989 and looks in detail at what we can
learn from the past twenty years and what challenges we may face in the future.
Written by a distinguished team of academics and professional economists from
central banks around the world, the book covers a wide range of issues including many that
have arisen as a result of the recent financial crisis. It should be read by anyone
concerned with better understanding inflation targeting and its past, present and future
role within monetary policy.
Table of Contents
List of figures
List of tables
1. Introduction David Cobham, Oyvind Eitrheim, Stefan Gerlach and Jan
Qvigstad
2. Welcome remarks: a Norwegian perspective Jan F. Qvigstad
3. Reflections on inflation targeting Athanasios Orphanides
4. Inflation targeting at 20: achievements and challenges Scott Roger
5. Inflation targeting twenty years on: where, when, why, with what effects, what
lies ahead? Klaus Schmidt-Hebbel
6. How did we get to inflation targeting and where do we need to go to now? A
perspective from the US experience Daniel L. Thornton
7. Inflation control around the world: why are some countries more successful than
others? Thórarinn G. Pétursson
8. Targeting inflation in Asia and the Pacific: lessons from the recent past
Andrew Filardo and Hans Genberg
9. Inflation targeting and asset prices Christopher Allsopp
10. The optimal monetary policy instrument, inflation versus asset price
targeting, and financial stability Charles Goodhart, Carolina Osorio and
Dimitrios Tsomocos
11. Expectations, deflation traps and macroeconomic policy George Evans
and Seppo Honkapohja
12. Heterogeneous expectations, learning and European inflation dynamics Anke
Weber
13. Inflation targeting and private sector forecasts Stephen Cecchetti
and Craig Hakkio
14. Inflation targeting, transparency and inflation forecasts: evidence from
individual forecasters Christopher Crowe
15. Gauging the effectiveness of quantitative forward guidance: evidence from
three inflation targeters Magnus Andersson and Boris Hofmann
16. Macro modelling with many models Ida Wolden Bache, James Mitchell,
Francesco Ravazzolo and Shaun P. Vahey
17. Have crisis monetary policy initiatives jeopardised central bank independence?
Charles Goodhart
18. Inflation targeting: learning the lessons from the financial crisis
Spencer Dale
19. The financial crisis as an opportunity to strengthen inflation targeting
frameworks Hans Genberg
20. Leaning against the wind is fine, but will often not be enough Lars
Heikensten
21. Inflation targeting, capital requirements and 'leaning against the wind': some
comments Sushil Wadhwani
Index.
468 pages, Hardcover
