Advancing Inflation Targeting in Central Europe: Strategies, Policy Rules and Empirical Evidence
Document Type
Peer-Reviewed Article
Publication Date
9-2008
Abstract
This paper analyses the evolution of inflation targeting policies in Central European countries. The origins of their inflation targeting strategies are examined, above all the commitment to price stability as well as the inability of prior policy regimes to engender financial stability. Recent policy modifications toward greater flexibility of inflation targeting are reviewed and a system of targeting the differentials between the domestic and the euro area inflation forecast is advocated as conducive to achieving euro-convergence.
Recommended Citation
Orlowski, L. (2008). Advancing inflation targeting in Central Europe: Strategies, policy rules and empirical evidence. Comparative Economic Studies, 50(3), 438-459.
