In macroeconomics, inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the medium-term and announces this inflation target to the public.

Jul 10, 2025 · This column discusses three main challenges faced by inflation-targeting central banks: the recent high-inflation episode and increasingly frequent supply-side disruptions; expanding central …

Sep 30, 2025 · Inflation targeting is a monetary policy strategy used by central banks to establish an ideal inflation rate, typically about 2% to 3%, and adjust its monetary policy tools to achieve the...

In this framework, a central bank estimates and makes public a projected, or “target,” inflation rate and then attempts to steer actual inflation toward that target, using such tools as interest rate changes.

Inflation targeting central banks recognized that too low an inflation target might have deleterious effects on the economy and thus decided to set their inflation targets well above zero, gravitating to a target …

Mar 11, 2025 · Recent and upcoming reviews of monetary policy frameworks have been putting the spotlight on the evolution of inflation targeting. This article provides context by using a new database …

Inflation targeting controls the inflation rate by adjusting the central bank's monetary policy. An inflationary situation occurs in an economy due to a general increase in the price level of goods and …

Mar 15, 2024 · Inflation targeting is a central banking strategy focusing on maintaining price stability to achieve a specified annual rate of inflation, usually set between 2% and 3%. This approach, widely …

Inflation targeting is a form of monetary policy, where the central bank changes interest rates in order to influence aggregate demand and keep the economy close to an inflation target rate, which is …

Mar 22, 2024 · In summary, inflation targeting is a critical monetary policy strategy that aims to maintain economic stability by keeping inflation at a predictable and stable rate.