|
Optimal Inflation Tolerance Band |
|---|---|
| รหัสดีโอไอ | |
| Creator | Nath Bunditwattanawong |
| Title | Optimal Inflation Tolerance Band |
| Publisher | Faculty of Economics, Chulalongkorn University |
| Publication Year | 2559 |
| Journal Title | Southeast Asian Journal of Economics |
| Journal Vol. | 4 |
| Journal No. | 1 |
| Page no. | 83-111 |
| Keyword | monetary policy, central banks and their policies, policy designs and consistency |
| URL Website | http://www.econ.chula.ac.th/public/publication/journal/sajehome.php |
| Website title | Southeast Asian Journal of Economics |
| ISSN | 2465-5120 |
| Abstract | Recently, some inflation-targeting countries have started to use point targeting instead of tolerance band targeting, while most inflation-targeting countries still use tolerance band targeting. The main reason for the use of tolerance band targeting is to avoid serious inflation biases caused by political interference. It is considered to be an institutional arrangement; which is a subclass of an inflation contract and it modifies the central bank's preferences by imposing a constraint on the likelihood of inflation and also it is the most compromising method comparing to other institutional devices. Besides, it does not severely decrease the societys welfare. |
