The Case for Forecast Targeting as a Monetary Policy Strategy
Bibliographic Data
| ID | 4742597 |
|---|---|
| Authors | Michael Woodford (0000-0001-5485-5280, John Bates Clark Professor of Political Economy, Columbia University, New York City, New York., corresponding author) |
| Year | 2007 |
| Volume | 21 |
| Issue | 4 |
| Pages | 3-24 |
| Publication date | 2007-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Perspectives (JOURNAL) |
| Journal identifiers | ISSN: 0895-3309 • E-ISSN: 1944-7965 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/jep.21.4.3 |
| OpenAlex | W2020751753 |
| Language | EN |
| Citations received | 7 |
| References cited | 14 |
At central banks around the world, including the Bank of England, Sweden's Riksbank, Norway's Norges Bank, and the Reserve Bank of New Zealand, policy is conducted on the basis of "inflation-forecast targeting": the central bank constructs quantitative projections of the economy's expected future evolution based on the way in which it intends to control short-term interest rates, and public discussion of those projections plays a critical role in justifying the banks' conduct of monetary policy to the public. What accounts for the appeal of this approach? Should it be adopted more widely or more explicitly? I review the long-running debate between proponents of monetary rules and proponents of discretionary monetary policy and argue that inflation-forecast targeting represents a powerful synthesis of the two approaches. I explore some common questions that arise about inflation-forecast targeting and consider how the U.S. Federal Reserve might move toward an explicit policy of inflation-forecast targeting
Appeal · Central bank · Economics · Inflation targeting · Interest rate · Macroeconomics · Monetary economics · Monetary policy · Political science · Quantitative easing · Economic Theory and Policy · Economic, financial, and policy analysis · Law · Monetary Policy and Economic Impact
Two Types of (Slight) Flexibility in Bank of Canada Projections, 2003–2019
Transparence et communication au sein de la Beac
The Banco Central do Brasil's institutional framework after ten years
Identifying a Forward‐looking Monetary Policy in an Open Economy
Financial Intermediation and Macroeconomic Analysis
Central Bank Design
Friedman's Presidential Address in the Evolution of Macroeconomic Thought
| Unique citing works | 7 |
|---|---|
| Citations per year | 0,44 |
| Citation span | 2010 - 2019 (10) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 7 |