Inflation Targets

Since 1989, a number of countries have adopted explicit quantitative inflation targets to reduce and control inflation. This book examines the explicit regimes of Canada, Finland, New Zealand, Sweden and the UK, and compares them with the less explicit regimes of Germany, Israel, Italy and the US. The wide-ranging theoretical and empirical analysis of the role, announcement and achievement of targets, and of the institutional reforms that might be necessary to support price stability, provides the first comprehensive evaluation of the impact of inflation targets on monetary policy and inflation performance.