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.
However, a month ago I pointed out some reasons to wonder
whether inflation targeting might be going out of style.
The public might rightly wonder
whether inflation targets might shift up again at some future point as other problems arose.
Not exact matches
The occasion for the release was the end of the Bank of Canada's latest review of
whether it is on track to hit its
inflation target.
Even if
inflation remains short of the ECB's
target of near 2 percent, its policymakers have been debating
whether to end the central bank's 2.55 trillion euro ($ 3.06 trillion) asset purchase scheme.
«In fall 2016, the Bank of Canada, in cooperation with the Minister of Finance, will decide
whether or not to change the country's
inflation target.
The question is
whether this will translate to a push for euro zone
inflation towards the European Central Bank
target of just below two percent.
But, it is at least an open question
whether central banks can always be credible in claiming they will hit their
inflation targets.
Sometimes people ask
whether a higher
target for
inflation might not be better, particularly when
inflation is looking like it will rise and the Bank is running a setting of monetary policy designed to resist that.
The Fed currently
targets a 2 percent
inflation rate, but it is ambiguous as to
whether this is an average
target (meaning that if you're below it for a while you then need to be above it for a time) or a ceiling.
These appearances are in public, and allow the public, via the parliament, to question
whether the central bank's actions remain consistent with the
inflation target.
Precious and Industrial Metals
Inflation concerns, geopolitical tensions and interest - rate levels, especially real yields, contributed to a 1.7 % rise in the spot price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see
whether it
targets more rate increases in 2018 than previously projected.
In fact, in late 2009, we are still to see
whether inflation will be consistently back to
target over a period of time.
Then there is the question of
whether it is better to
target the annual rate of
inflation or the price level.
All of the argument about appropriate
inflation targeting in recent years has focused not on
whether 2 percent is too high but on
whether it is too low a
target.
The government also will spend part of this year deciding
whether to simply renew or tweak its
inflation -
targeting agreement with the Bank of Canada.
He also notes that she led the «2 - percent side» in the Fed's monetary - policy debate of
whether the Fed should be
targeting 2 - percent
inflation or zero.
«In determining
whether it will be appropriate to raise the
target range at its next meeting, the committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2 percent
inflation,» the Fed said in a statement after its latest two - day policy meeting.