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An international comparison of inflation-targeting frameworks

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This article compares the inflation-targeting frameworks of 10 advanced-economy central banks. In particular, it assesses how New Zealand’s Policy Targets Agreement compares to other advanced economy inflation-targeting frameworks and how the specifications in each framework compare to the actual practice of each central bank. The comparison focuses on five components of an inflation-targeting framework: the inflation target definition, communication of monetary policy, secondary considerations, assessment of inflation-targeting performance, and framework reviews and revisions. It finds that while the formal inflation-targeting frameworks differ between each central bank, in practice each bank operates in a similar manner.

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  • Amber Wadsworth, 2017. "An international comparison of inflation-targeting frameworks," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 80, pages 1-34, August.
    • Handle: RePEc:nzb:nzbbul:dec2017:09
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    6. Castelnuovo, Efrem & Rodriguez-Palenzuela, Diego & Nicoletti Altimari, Sergio, 2003. "Definition of price stability, range and point inflation targets: the anchoring of long-term inflation expectations," Working Paper Series 273, European Central Bank.
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    1. Christie Smith & Omar Aziz, 2019. "Monetary policy objectives- price stability and macro stabilisation," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 82, pages 1-14, April.
    2. Ernest Gnan & Claudia Kwapil & Maria Teresa Valderrama, 2018. "Monetary policy after the crisis: mandates, targets, and international linkages," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q2/18, pages 8-33.
    3. David Altig, 2018. "A new twist on an old framework: bounded price-level targeting," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(3), pages 156-162, July.
    4. Bradley Jones & Joel Bowman, 2019. "China's Evolving Monetary Policy Framework in International Context," RBA Research Discussion Papers rdp2019-11, Reserve Bank of Australia.
    5. Balatti, Mirco, 2020. "Inflation volatility in small and large advanced open economies," Working Paper Series 2448, European Central Bank.
    6. John McDermott & Rebecca Williams, 2018. "Inflation Targeting in New Zealand: An Experience in Evolution," RBA Annual Conference Volume (Discontinued), in: John Simon & Maxwell Sutton (ed.),Central Bank Frameworks: Evolution or Revolution?, Reserve Bank of Australia.

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