Research on Inflation Targeting

Author: Cao Hua
Publisher:
Publish Date: 2006-10-01
Features: This book systematically analyzes the target system of monetary policy, explores the connotation and background of inflation targeting, and discusses the effectiveness of inflation targeting in reducing dynamic inconsistency and enhancing monetary policy credibility from both theoretical and empirical perspectives. Based on a systematic review of the economic theory of central bank independence, it measures the central bank independence index and conducts an empirical analysis of the independence of central banks in inflation-targeting countries and their policy credibility. Furthermore, it examines the policy advantages of inflation targeting under open economic conditions, conducts a quantitative analysis of the effectiveness of China's monetary policy since the reform and opening-up, explores the underlying reasons for the inefficient transmission mechanism of China's monetary policy, and proposes relevant policy recommendations for implementing an inflation-targeting monetary policy.