ECB Study on Inflation Targeting Finds Ranges Beat Hard Goals
(Bloomberg) -- Central banks can better control inflation expectations if they use a range for price growth rather than a precise goal, according to a European Central Bank study that could have implications for the institution’s strategic review.The working paper by Michael Ehrmann, head of the monetary policy research division and a former Bank of Canada official, looked at inflation-targeting strategies in 20 advanced and emerging-market economies.It found that defining a band within which consumer-price growth is considered acceptable bolsters the central bank’s credibility b...
Source: yahoo.com