Inflation targeting and the anchoring of inflation expectations in the Western hemisphere

Many central banks have adopted a formal inflation-targeting framework based on the belief and the theoretical predictions that an explicit and clearly communicated numerical objective for the level of inflation over a specified period would, in itself, be a strong communication device that would he...

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Auteurs principaux: Gürkaynak, Refet S., Levin, Andrew T., Marder, Andrew N., Swanson, Eric T.
Format: Artículo
Langue:eng
Publié: Banco Central de Chile 2019
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Accès en ligne:https://hdl.handle.net/20.500.12580/3727
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Résumé:Many central banks have adopted a formal inflation-targeting framework based on the belief and the theoretical predictions that an explicit and clearly communicated numerical objective for the level of inflation over a specified period would, in itself, be a strong communication device that would help anchor long-term inflation expectations. Empirically verifying the success of inflation-targeting regimes in this dimension has been difficult, however, as survey data on long-term inflation expectations tend to be of limited availability and low frequency.