How are inflation targets set?

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F11%3A10100425" target="_blank" >RIV/00216208:11230/11:10100425 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/11:00364420
Result on the web
<a href="http://dx.doi.org/10.1111/j.1468-2362.2011.01283.x" target="_blank" >http://dx.doi.org/10.1111/j.1468-2362.2011.01283.x</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1111/j.1468-2362.2011.01283.x" target="_blank" >10.1111/j.1468-2362.2011.01283.x</a>

Result language
angličtina
Original language name
How are inflation targets set?
Original language description
This paper contributes to a better understanding of how inflation targets are set. First, we gather evidence on how inflation targets are set from official central bank and government publications, and from a questionnaire of our own design. Second, we estimate what determines the level of the inflation target in 19 inflation-targeting countries by using unbalanced panel interval regressions to deal with the issue that targets are typically set as a range rather than a point. We find that a higher target is associated with a higher level and variability of inflation. The setting of the inflation target is also found to have an important international dimension because higher world inflation is positively correlated with inflation targets. Rapidly growing countries exhibit higher inflation targets. Our results also show that authorities establish a wider target range for the inflation rate when the macroeconomic environment is less stable. We find that central bank credibility is negati
Czech name
—
Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—

Project
<a href="/en/project/GAP402%2F10%2F0448" target="_blank" >GAP402/10/0448: Monetary policy transparency: Theory and empirical evaluation</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2011
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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