Sentences with phrase «inflation targeting framework»

Building on continued progress in improving the effectiveness of its inflation targeting framework, BOG remains committed to maintaining an appropriate monetary policy stance to bring inflation down toward its medium - term objective.

On the monetary side, the inflation targeting framework the Reserve Bank has been following for a decade and a half will guide adjustments to interest rates.

This move was what the flexible inflation targeting framework suggests should happen.

Third, I am inclined to agree with recent work in the Bank of England that suggests that it is possible, at least in principle, to embed this discussion within a medium - term inflation targeting framework.

In this situation, the inflation targeting framework would say to raise interest rates to a setting which would bring inflation back to the target.

If it were the case that undershooting the target for a period while achieving reasonable growth was the «least bad» option available, the inflation targeting framework has the requisite degree of flexibility to allow such a course.

The inflation wars of the 1970s and 1980s led to a broad consensus on two fronts among academics and policymakers: First, central banks are responsible and accountable for price stability, which was often acknowledged through the formal adoption of an inflation targeting framework.

Not exact matches

Subdued inflation forced the BOJ to revamp its policy framework in 2016 to one better suited for a long - term battle against deflation, which targets interest rates instead of the pace of money printing.

Analysts who follow the Fed complain that its framework has become confusing: low unemployment and inflation close to the 2 % target would not seem consistent with a policy rate more aligned to a recession.

The speech makes clear that the Bank's monetary policy frameworks centres around a flexible inflation target that aims to deliver an average rate of inflation of between 2 - 3 per cent over time and in a way that best serves the public interest.

The flexible inflation target served as a useful framework to think about the Asian crisis.

The next section provides details of the inflation - targeting framework in Australia, focusing on the aspects of the framework in Australia that provide scope for greater flexibility.

Increased communication and transparency is beneficial for any monetary policy framework but it has played a particularly prominent role in inflation - targeting regimes.

There are a number of aspects of the Australian framework which have the potential to deliver greater flexibility in the practical implementation of the inflation target.

The past two decades have seen the increasingly widespread adoption of inflation targeting as the framework for monetary policy.

The inflation - targeting framework is being severely stress - tested at the moment.

In that regard, it is worth noting that the three major economic areas, none of which have an explicit inflation - targeting framework have suffered at least as large an economic dislocation as the inflation - targeting countries, and in the case of Japan, considerably larger.

The global financial crisis is providing a significant stress test of the inflation - targeting framework, including in Australia.

Indeed, the financial markets anticipated significantly more tightening than actually occurred, reflecting their lack of faith in the credibility of the relatively new inflation - targeting framework.

A long - standing criticism of the inflation - targeting framework was that it had not been properly tested.

It assumed that the boost to the price level would be once - off, and that the credibility of the inflation - targeting framework would ensure that inflation expectations remained anchored at the target rate.

The inflation target has served as a useful organising framework for this document.

[5] The inflation - targeting framework in Australia was subsequently verbally endorsed by the government of the day, but was not formally endorsed until 1996, when a new government signed a letter of agreement with a new Governor, upon his appointment.

Before discussing the asset price issue, again it is worth repeating that the issue is whether inflation targeting itself led to monetary policy settings being easier than would have been the case in other frameworks.

Equivalently, the experience also suggests that a rigid application of an inflation - targeting framework may not be necessary, and that there may be elements of the Australian approach which may be applicable to emerging market economies considering adopting an inflation target.

In part for this reason, at the inception of the inflation target there was no change to the legislated framework, which has not materially altered since its inception in 1959 (Table 1).

To illustrate the practical application of the inflation - targeting framework in Australia and its flexibility, it is useful to focus on the operation of monetary policy in three particular episodes (Graph 2).

In 1993, the Australian framework was at the flexible end of the spectrum of inflation - targeting practice, and was criticised for being too lax.

That framework's been in place since the early 1990s, we have hit the target over that 20 year period, the average inflation rate's pretty close to 2.5 per cent, so we regard that as successful by the terms of the definition that we set ourselves and I think that's made a big contribution to economic stability more generally and I don't think it's an accident that that period of fairly low predictable inflation has coincided with pretty good sustained growth in the economy.

Australia's inflation - targeting framework has remained basically unchanged since its adoption in 1993.

Notwithstanding this, the inflation - targeting framework is clearly being severely tested in the current circumstance.

Speeches by the Governor and senior officials of the RBA have been a primary vehicle to enhance the status and understanding of the inflation - targeting framework in Australia.

Once it is clear that such a setting had done its job, the framework calls for it to be replaced by one more likely to keep inflation at the target.

In this case, the framework would call for a setting of interest rates which would, over time, allow inflation to go back up to the target.

But a well - designed inflation - targeting framework allows for deviations from target, for a while, in the face of shocks.

For inflation targeting countries, it would certainly be a retrograde step in my view to be perceived as walking away from a framework which has for a decade delivered good results, in favour of some explicit pursuit of asset prices per se.

The centrepiece of the framework for monetary policy is a medium - term target for inflation.

Since the early 1990s, inflation targeting has formed the basis of Australia's monetary policy framework.

The principal medium - term objective of monetary policy is to control inflation, so an inflation target is thus the centrepiece of the monetary policy framework.

It restates the Bank's approach to making monetary policy decisions within the framework of a medium - term inflation target, in way that supports sustainable economic growth and serves the public interest.

If the Fed believed that a 2 percent inflation target was appropriate at the beginning of 2012 when it believed the neutral real rate was above 2 percent, I can not see any argument for not adjusting the target or altering the framework when the neutral real rate is very plausibly close to zero.

Australia's flexible inflation - targeting framework does not aim to fine - tune economic outcomes, but rather is designed to ensure that inflation remains on track over the medium term.

Because the flexibility in our framework allows it, we reserve the right to choose our policy tactics so that our actions don't significantly worsen financial stability concerns by opting for a policy path that aims to return inflation to target over a longer time frame than normal.

«Inflation targeting» summarises the system widely adopted in the last two decades on a nation - by - nation basis, involving independent central banks using interest rates to keep inflation at a target level in the framework of a New Keynesian macroeconomInflation targeting» summarises the system widely adopted in the last two decades on a nation - by - nation basis, involving independent central banks using interest rates to keep inflation at a target level in the framework of a New Keynesian macroeconominflation at a target level in the framework of a New Keynesian macroeconomic model.

Mr. Speaker, consistent with our medium - term development policy framework, we have set the following macroeconomic targets for the medium term (2018 - 2021): • Real GDP to grow at an average rate of 6.2 percent between 2018 and 2020; • Inflation to stay within the target band of 8 ± 2 %; • Overall fiscal deficit to remain within the fiscal rule of 3 - 5 percent; • Primary balance expected to improve from a surplus of 0.2 percent of GDP in 2017 and remain around 2.0 percent in the medium term; and • Gross International Reserves to cover at least 4 months of imports.

The S&P Shift to Retirement Income and Decumulation (STRIDE) Indices combine a target date glide path with a new risk management framework to serve as a benchmark for investors saving to fund consumption in retirement, reflecting a transition from wealth creation to inflation - adjusted retirement income.