DP1998 Inflation Targeting as a Monetary Policy Rule

Author(s):	Lars E.O. Svensson
Publication Date:	October 1998
Keyword(s):	indicators, instruments, intermediate targets, targets
JEL(s):	E42, E52
Programme Areas:	International Macroeconomics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=1998

The purpose of the paper is to survey and discuss inflation targeting in the context of monetary policy rules. The paper provides a general conceptual discussion of monetary policy rules, attempts to clarify the essential characteristics of inflation targeting, compares inflation targeting to other monetary policy rules, and draws some conclusions for the monetary policy of the European System of Central Banks.