Inflation-Forecast Targeting: Applying the Principle of Transparency

Kevin Clinton · Charles Freedman · Michel Juillard · Mr.Ondrej Kamenik · Mr.Douglas Laxton · Hou Wang

Jun 2015 · International Monetary Fund

About this ebook

Many central banks in emerging and advanced economies have adopted an inflation-forecast targeting (IFT) approach to monetary policy, in order to successfully establish a stable, low-inflation environment. To support policy making, each has developed a structured system of forecasting and policy analysis appropriate to its needs. A common component is a model-based forecast with an endogenous policy interest rate path. The approach is characterized, among other things, by transparent communications—some IFT central banks go so far as to publish their policy interest rate projection. Some elements of this regime, although a work still in progress, are worthy of consideration by central banks that have not yet officially adopted full-fledged inflation targeting.

About the author

Charles Freedman is a Senior Flash Developer for Yahoo! with a communications degree in film and television from Boston University. His development approach combines an education in multimedia with expertise and passion for building engaging and intuitive applications and content. In recent years, Charles has produced some of the most highly visible Flash platform work, leading development for Yahoo! Maps and deploying modules for the home pages of eBay, eBay China and Fidelity. Born in Boston, Charles relocated with his wife Jamie to sunny Santa Clara, California, to join Yahoo! in 2005. Still a season ticket holder, he plans many trips back East to see his beloved Red Sox win another World Series.