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Schnabel: The future of inflation (forecast) targeting
Since the early 1990s, many central banks worldwide have adopted a framework for monetary policy known as “inflation targeting”.[ 1 ] In this framework, central banks announce a target rate or range for medium-term inflation, typically 2%, and adjust short-term interest rates to steer actual inflation towards the target.[ 2 ] The rise of inflation targeting was a response to the turbulent inflation episodes of the 1970s and 1980s when most central banks were only loosely committed to price stability. Inflation targeting was an acknowledgement that monetary policy was most effective when it was given a clear ... (full story)
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ECB's Schnabel: Forecast Errors Contributed To Central Banks’ Delayed Reaction To The Surge In Inflation
— LiveSquawk (@LiveSquawk) April 17, 2024
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MORE ECB'S SCHNABEL: CENTRAL BANKERS SHOULD EVALUATE HOW PROJECTIONS COULD BE MADE MORE ROBUST#europeancentralbank #isabelschnabel #ecb #monetarypolicy #interestrates #inflation
— Mace News (@MaceNewsMacro) April 17, 2024