Economics, Econometrics and Finance
4 years ago

New approach to inflation goals enhances policy accuracy and accountability.

SSRN Electronic Journal
An Inflation Goal with Multiple Reference Measures
William C. Whitesell

Paper Summary

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The article suggests a new way for central banks to communicate their inflation goals by using specific point-values for key inflation indicators instead of broad ranges. By focusing on these key measures, policymakers can better understand and respond to changes in inflation, leading to more effective monetary policy.