Direct inflation targeting Cover Image

Direct inflation targeting

Author(s): Florin Dumiter
Subject(s): Economy
Published by: Editura Universităţii Vasile Goldiş
Keywords: inflation targeting; inflation rate; sacrifice ratio; rules versus discretion; economic performances; economic outcome; inflation expectations.

Summary/Abstract: Over the last three decades, we could identify three monetary policy strategies which had been successful in conferring an efficient nominal anchor, namely: monetary targeting, exchange rate targeting and inflation targeting. However, in economic literature it ca be identified a fourth monetary policy strategy: nominal income targeting, a framework considered appropriate for the half-open economies. In practice this strategy was never adopted neither by industrialized countries nor by emerging countries. Inflation targeting regime consists in establishing a target for the inflation rate over a time period, target which should be achieved through a set of monetary policy measures in order to maintain price stability.

  • Issue Year: 19/2009
  • Issue No: 2
  • Page Range: 354-367
  • Page Count: 14
  • Language: Romanian