Many central banks target an inflation rate near two percent. This essay argues that policymakers would do better to … target four percent inflation. A four percent target would ease the constraints on monetary policy arising from the zero … cost, because four percent inflation does not harm an economy significantly. …

implication for economic policy has been the implementation of inflation targeting (IT). This paper critically raises a number of …

in activity alongside high inflation. Executive Directors have welcomed the commitment made in the 2008 budget to tighten …

analyze the inflation outlook and monetary policy challenges. The Bank of Indonesia (BI) introduced its Inflation Targeting … Framework in July 2005 with the goal to reduce inflation in the medium term to 3 percent. BI’s official mandate is stability … of the rupiah, both internal and external, and BI views the inflation targeting regime with a floating exchange rate as …

This Selected Issues paper examines the acceleration of inflation over the past year in Chile, identifying domestic … compares it with alternative policy rules. The paper concludes that Chile’s framework based on an explicit inflation target, a …