An international comparison of inflation-targeting frameworks
This article compares the inflation-targeting frameworks of 10 advanced-economy central banks. In particular, it assesses how New Zealand’s Policy Targets Agreement compares to other advanced economy inflation-targeting frameworks and how the specifications in each framework compare to the actual practice of each central bank. The comparison focuses on five components of an inflation-targeting framework: the inflation target definition, communication of monetary policy, secondary considerations, assessment of inflation-targeting performance, and framework reviews and revisions. It finds that while the formal inflation-targeting frameworks differ between each central bank, in practice each bank operates in a similar manner.