Template-Type: ReDIF-Article 1.0
Author-Name: Réka Juhász
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Title: The optimal rate of inflation and the inflation target: international experience and the Hungarian perspective
Abstract: This article discusses the main factors considered in defining the country’s inflation target which was revised this year. Three key issues are covered: the theoretical and empirical literature dealing with the optimal level of inflation, international best practice and individual, country-specific factors that may justify deviation in any direction from best practice. The article finds that the 3% inflation target set by the MNB is consistent with all the three aspects reviewed and, consequently, contributes to the MNB achieving its primary statutory objective of price stability.
Classification-JEL: E31, E52, E58.
Keywords: monetary policy, optimal rate of inflation.
Journal: MNB Bulletin
Pages: 30-37
Volume: 3
Issue: 2
Year: 2008
Month: September
File-URL: http://www.mnb.hu/letoltes/mnb-bull-2008-09-reka-juhasz-en.pdf
File-Format: Application/pdf

Handle: RePEc:mnb:bullet:v:3:y:2008:i:2:p:30-37