Inflation Targeting : What is the Meaning of the Bottom of the Band? /

This paper investigates the meaning of the bottom of target bands in inflation targeting regimes. It is argued that the design of lower limits on target bands, if not done with care, can lead to a lack of transparency, potentially confusing markets about how the authorities will react to a fall in i...

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Dettagli Bibliografici
Autore principale: Clifton, Eric
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 1999.
Serie:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 1999/008
Accesso online:Full text available on IMF
Descrizione
Riassunto:This paper investigates the meaning of the bottom of target bands in inflation targeting regimes. It is argued that the design of lower limits on target bands, if not done with care, can lead to a lack of transparency, potentially confusing markets about how the authorities will react to a fall in inflation. After first discussing the conceptual issues, the paper then examines the experience with target bands in New Zealand, Israel and Canada and explores how the conceptual issues have played out in practice.
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Descrizione fisica:1 online resource (24 pages)
Natura:Mode of access: Internet
ISSN:1934-7456
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students