Template-Type: ReDIF-Article 1.0
Author-Name: Dániel Felcser
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: felcserd@mnb.hu

Author-Name: Laura Komlóssy
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: komlossyl@mnb.hu

Author-Name: Árpád Vadkerti
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: vadkertia@mnb.hu

Author-Name: Balázs H. Váradi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: varadib@mnb.hu

Title: Inflation targeting

Abstract: The most important goal of economic policy is to ensure stable economic
growth that is sustainable over the long term, to which central banks can
contribute by keeping inflation low and pursuing a predictable, credible
monetary policy. In various countries, this understanding serves as a basis
for central bank legislation, in which central banks’ primary objective is
stipulated as the achievement and maintenance of price stability. Nearly 30
countries use an inflation targeting (IT) framework for achieving price stability.
In addition to price stability, central banks’ strategies also contain other goals
such as ensuring financial stability and supporting the economic policy of
the government, but these may only be pursued by central banks without
prejudice to the primary objective.

Keywords: inflation targeting, monetary policy, financial crisis

Journal: MNB Handbooks
Pages: 1-64
Volume: 1
Issue: 3
Year: 2016
File-URL: https://www.mnb.hu/letoltes/mnb-oktatasi-fuzetek-3-eng-digitalis.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:handbk:v:1:y:2016:i:3:p:1-64