Search Results for: inflation target

Raise the inflation target to 4 per cent.

A post from me on this topic that appeared on Ben Chu’s ‘Chunomics’ blog at the Independent.

Posted in Uncategorized | 8 Comments

PS on inflation targets

A post script to my last post. To be clear, on the substance, as to whether owner-occupation costs should be included, Andy Haldane and Mark Carney, from what I read of their reported words, seem to have it right.  Inclusive … Continue reading

Posted in Uncategorized | Leave a comment

BoE should keep out of debates about the ideal inflation target

As Ben Chu reports, an ONS report by Paul Johnson has recommended that CPI be “replaced” with CPIH, which additionally includes imputations of the costs of owner-occupation.  Replying to a tweet of mine saying that the BoE would keep out … Continue reading

Posted in Uncategorized | 5 Comments

Higher inflation target is preventative, not a cure

I had 3 comments on recent posts taking me as having recommended a higher inflation target now as a cure for the current zero bound episode.  That’s not my position.  A higher inflation target would help avoid the next episode, … Continue reading

Posted in Uncategorized | 6 Comments

Escaping the zero bound. NGDP, PLT vs raising the inflation target.

Post Post Script on the zero bound and raising the inflation target. It’s put to me that NGDP targeting is a better way to avoid the zero bound than raising the inflation target. This question can’t be answered definitively without … Continue reading

Posted in Uncategorized | 3 Comments

Rather than sweating over complex institutional reform to break ZLB, raise inflation target

Postscript to the previous post on the ZLB. The practical challenges of devising watertight legal reform to eliminate cash and its near substitutes, both currently invented and yet to be, or to reform them so that a variable negative interest … Continue reading

Posted in Uncategorized | 4 Comments

On raising the inflation target to combat secular stagnation

Tim Harford’s FT article responds to the recent ebook on secular stagnation – the tendency for weak demand to depress equilibrium real interest rates – circulated by VoxEU.  He deduces that raising the inflation target would help combat or avoid … Continue reading

Posted in Uncategorized | 4 Comments

Slow-moving changes in equilibrium real rates could be accommodated with periodic inflation target reviews by an independent 3rd party

Many, for different reasons, have suggested that the rate at which central bank policy rates might settle will be significantly lower than the rate that prevailed on average in the pre-financial crisis period. In his parting speech as Deputy Governor … Continue reading

Posted in Uncategorized | 5 Comments

Raising the inflation target: great idea, but not now.

In a recent paper, Paul Krugman, echoing a suggestion made by Olivier Blanchard, makes a compelling case for raising the inflation target in the US and other Western economies, to avoid the difficulties that would come with another episode at the … Continue reading

Posted in Uncategorized | 4 Comments

Coping with segular stagnation by raising the inflation target. Respose to Kaminska and Delong

Brad Delong and Isabella Kaminska are against raising the inflation target as a response to secular stagnation.  To recap.  Larry Summers argued that currently the natural real rate is very low and may remain so for quite some time ahead.  … Continue reading

Posted in Uncategorized | 2 Comments