What is the goal of inflation targeting as seen in New Zealand, Canada, and the United Kingdom?
The goal of inflation targeting, as implemented in countries like New Zealand, Canada, and the United Kingdom, is to maintain price stability by controlling inflation within a specified target range. This monetary policy framework focuses on using interest rates and other monetary tools to achieve and maintain low and stable inflation over the medium term.
To understand the specific goals of inflation targeting in these countries, you could start by researching their central banks and monetary policy frameworks. For example, the Reserve Bank of New Zealand, the Bank of Canada, and the Bank of England each have their own mandates and objectives, which can be found on their respective websites. These objectives usually include maintaining price stability and supporting sustainable economic growth.
To delve deeper into inflation targeting, you can explore academic research, policy papers, and reports from these central banks. These sources can provide insights into the rationale, effectiveness, and specific strategies employed in their inflation targeting regimes.
It is important to keep in mind that the goals and approaches of inflation targeting may differ between countries. Therefore, understanding the specific policies and objectives of each country individually will provide a more comprehensive view of their inflation targeting frameworks.