Inflation targeting shifts monetary policy, aiming to keep inflation in check.
The study looked at how the UK's monetary policy changed after adopting inflation targeting in 1992. They found that policymakers now react more to inflation going above the target than below it. Instead of aiming for exactly 2.5% inflation, they seem to be trying to keep it between 1.4% and 2.6%. Also, interest rates change more when inflation is far from the target.