Description

The main objective of this study is to contribute to the public understanding of the inflationtargeting (IT) framework currently being implemented in several leading central banks. We do so by discussing differences in the institutional set up, the decision-making process, and the communication of monetary policy. We analyze these aspects from a conceptual perspective and review them in practice by referring to a set of eleven “small, open” OECD economies as well as four major central banks of the world (Bank of England, Bank of Japan, European Central Bank, & the Federal Reserve). We pay specific attention to recent changes along the multiple dimensions that have, on balance, aimed at further strengthening the IT framework.