Inflation Targeting: Should It Be Modeled as an Instrument Rule or a Targeting Rule?
Working Paper 8925
DOI 10.3386/w8925
Issue Date
The paper discusses how current inflation targeting should be modeled, and argues that it is better represented as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), than as a commitment to a simple instrument rule (like a Taylor rule).
Published Versions
Svensson, Lars E. O. "Inflation Targeting: Should It Be Modeled As An Instrument Rule Or A Targeting Rule?," European Economic Review, 2002, v46(4-5,May), 771-780. citation courtesy of