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What is Defining Price Stability in Monetary Policy about?

This paper by Lars E.O. Svensson discusses the definition and maintenance of price stability as a target for monetary policy, examining the differences between price-level stability and low inflation. It evaluates three main approaches to maintaining price stability: simple instrument rules, forecast targeting, and intermediate targeting, arguing that forecast targeting provides a more systematic framework for monetary policy. The paper also critiques the Eurosystem

Author

rewardmazodz

Language

EN