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7 - Raising the Inflation Target

from III - Targets and Instruments

Published online by Cambridge University Press:  14 November 2024

By
Tony Yates
Edited by
Sean Holly ,
Michael McMahon ,
Stephen Millard  and
Anna Watson
Sean Holly
Affiliation:
University of Cambridge
Michael McMahon
Affiliation:
University of Oxford
Stephen Millard
Affiliation:
National Institute of Economic and Social Research
Anna Watson
Affiliation:
University of Cambridge
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Summary

Much ink has been spilled on the issue of how to design central bank mandates since the improvised and hasty birth of the inflation target in the UK in the aftermath of its exit from Europe’s Exchange Rate Mechanism in the autumn of 1992. This chapter is a brief introduction to the argument for raising the inflation target in the light of the experience since the target was first set, and aims to spill as little further ink as possible

Keywords

Inflation targetcredibilitycommunication
Type
Chapter
Information
Reflections on Monetary Policy after 25 Years of the MPC , pp. 89 - 99
Publisher: Cambridge University Press
Print publication year: 2024

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