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Targeting inflation is not enough.
It could, for example, announce it is targeting inflation, perhaps just temporarily, of 4% instead of 2%.
She wants central banks to stop targeting inflation and to focus instead on total spending in the economy, or nominal GDP.
It still believes that targeting the supply of money, if only loosely, adds something to its fight against inflation, over and above targeting inflation directly.
To support their case, they presented a series of computer simulations, which appeared to show that a policy of targeting inflation stabilized the economy more effectively than one that targeted bubbles.
In 1999, as economists were debating how to respond to a dotcom boom that had reached irrational proportions, he and a colleague presented a paper that used computer simulations to show that the Fed would be better off targeting inflation and leaving supposed "bubbles" well alone.
Similar(46)
For the three inflation targeters that target inflation at (3,%) the long-run expected interest rate is approximately (4.4,%).
Central banks always target inflation flexibly.
Finance: Still Freaking Out A Federal Reserve member wants to target inflation, interest and unemployment.
Thirteen emerging markets now target inflation, allowing the exchange rate to float more cleanly.
"Most of us think that we're managing the whole economy and we're trying to target inflation, unemployment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com