Time to reassess inflation targeting
Leung, Christina; Lees, Kirdan | December 2015
Abstract
For over a generation, inflation targeting has been successful in managing inflation without reducing economic growth. But the economic environment is changing. No longer does the Reserve Bank need to lift rates to reduce demand. Today the Reserve Bank needs to deal with supply shocks that rapidly change how New Zealand firms organise activity. Increasingly that makes inflation targeting no longer fit-for-purpose. Instead, targeting income growth – the sum of inflation and economic growth – looks the best bet to deal with new economic conditions.
Citation
Leung, Christina; Lees, Kirdan. 2015. Time to reassess inflation targeting. © New Zealand Institute of Economic Research. http://hdl.handle.net/11540/9193.Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Results-Based Monitoring And Evaluation
Project Evaluation & Review Technique
Project Evaluation
Program Evaluation
Performance Evaluation
Operations Evaluation
Evaluation Methods
Evaluation
Social condition
Economic dependence
Economic assistance
International monetary relations
International monetary relations
International trade
National accounting
Market
Project impact
Development projects
Program management
Performance appraisal
Project appraisal
Technology assessment
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Exports
Exports
Exchange
Comparative economics
Index number
Monetary policy
Value analysis
Adjustment cost
Transaction cost
Conditionality
International relations
Cumulative effects assessment
Grievance procedures
Participatory monitoring and evaluation
Exchange rate
Economic development projects
Economic policy
Economic forecasting
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