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Unlike monetary targets, inflation is a final rather than intermediate goal.
With the ZCCM albatross round its neck, the government has little chance of hitting the IMF's budgetary and monetary targets.
That would not matter for monetary targets if there were a direct link between money-supply growth and inflation.
Instead of trying to meet monetary targets, they use their own money to determine short-term interest rates.
At a time when the monetary targets were being overshot by a considerable margin, this was an important signal of an irrevocable break with the past.
Walters argued for Britain keeping to strict monetary targets to curb inflation - a view shared by Mrs Thatcher and popular with the Tory Right.
Similar(43)
Demand for money functions, which had previously seemed stable, commonly broke down once used as an intermediate monetary target.
It is, after all, rare that dollars will flow in precisely the quantities required to meet the PBOC's monetary target.
But at the regular Bank for International Settlements meetings in Basle he learned how his North American and German colleagues had refined monetary targeting, while economists in the Bank were putting monetarist ideas in a British context.
This is how central banks should talk: threatening to take away the punch bowl just as the party gets going, rather than offering to serve an even stronger brew.During the past century, every monetary rule has eventually broken down: the gold standard, the Bretton Woods system of fixed exchange rates, and monetary targeting.
The monetary targeting anticipated the transition to the inflation targeting regime.
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