Sentence examples for cpi target from inspiring English sources

As hypothesized, a product price target generally does a better job of stabilizing the real domestic prices of tradable goods than does a CPI target.

Keywords: money, nominal anchor, peg, terms of trade, agricultural commodities, Inflation Targeting, Peg the Export Price, Product Price Targeting, CPI target, mineral commodities, gold, Latin America.

"Wages need to grow more, of course, and we want to see them above the CPI target of 2% by the end of Q1 to show that the UK economy is humming along nicely," he added.

The selling point of these production-based price indices is that each could serve as a nominal anchor while yet accommodating terms of trade shocks, in comparison to a CPI target.

Colin Ellis, economist at Daiwa Securities, said: "With deflation now having arrived, the overwhelming priority is to ensure that this period of falling prices is short-lived". Speaking to the Treasury select committee yesterday, the new Bank of England monetary policy committee member Paul Fisher said he was concerned that the Bank could miss its 2% CPI target "on the downside".

CPI targeting gets this backwards.

CPI targeting failed spectacularly in the last recession, allowing a deep, long-lasting slump.

Such unexpected shocks can force the credibility-damaging abandonment of CPI targets or exchange rate targets that had been previously declared.

With respect to the second question, a good argument for Nominal GDP targeting is that it is robust with respect to supply shocks, whereas CPI targets, for example, are vulnerable to them.

The proposal for monetary policy is called Product Price Targeting (PPT), an alternative to CPI-targeting that is designed to be more robust with respect to terms of trade shocks.

Such accommodation is precluded if the exchange rate is fixed or if the CPI is targeted literally.