Series: IMF Policy Discussion Papers
Author(s): Eric Clifton
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 1999
Keywords: Inflation targeting, credibility, monetary policy, inflation, price stability, inflation target
This paper investigates the meaning of the bottom of target bands in inflation targeting regimes. It is argued that the design of lower limits on target bands, if not done with care, can lead to a lack of transpare...