Evolution of price level targeting and inflation targeting

Authors

  • László Bokor
https://doi.org/10.3311/pp.so.2007-2.05

Abstract

This paper puts together the origins and the development of price level targeting in Sweden and the inflation targeting in New Zealand. It highlights the common and dissimilar characteristics of the two monetary regimes, the two interpretations of ``price stability´´. Solid historical evidence shows that either inflation stabilization or - contrary to the conventional wisdom of our era - price stabilization can be a feasible goal of monetary policy.

Keywords:

monetary policy, inflation targeting, price level targeting

How to Cite

Bokor, L. (2007) “Evolution of price level targeting and inflation targeting”, Periodica Polytechnica Social and Management Sciences, 15(2), pp. 73–79. https://doi.org/10.3311/pp.so.2007-2.05

Issue

Section

Articles