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Price Stability, Inflation and Central Banks

C/E/638. Evaluation of Inflation targeting and the financial crisis

WORDS:
1950
DATE:
2010
PRICE:
19.99 GBP

This paper discusses inflation targeting (IT) and the way it may have contributed to the current financial crisis. The paper begins by providing a discussion on IT, and this is followed by an in-depth evaluation of the topic with reference to secondary literature. The three different types of IT is discussed, namely FFIT (Full-Fledged Inflation Targeting), Eclectic Inflation Targeting (EIT) and Inflation Targeting Lite (ITL). The paper discusses the advantages and disadvantages of using IT policies, and concludes by considering IT’s contribution to the financial crisis.

 

KEYWORDS: inflation targeting, IT, financial crisis, FFIT, Full-Fledged Inflation Targeting, Eclectic Inflation Targeting, EIT, Inflation Targeting Lite, ITL,

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