The First Year of the Eurosystem: Inflation Targeting or Not? / Lars E.O. Svensson.

Format:

Book

Author/Creator:

Svensson, Lars E.O.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7598.

NBER working paper series no. w7598

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The First Year of the Eurosystem

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2000.

Summary:

This paper is a brief evaluation of the Eurosystem's monetary-policy regime after its first year, in particular of the extent to which it is similar to inflation targeting as practiced by an increasing number of central banks. I examine the Eurosystem's goals, framework for monetary-policy decisions and communication with outsiders. Criteria for evaluation are whether the goals are unambiguous and appropriate; whether the decision framework is efficient in collecting and processing information and reaching decisions that are appropriate relative to the goals; and whether the communication is effective in motivating decisions, simplifying external evaluation and thereby improving transparency and accountability. I also consider whether the actual instrument setting has been appropriate, given the information available at the times of decision.

Notes:

Print version record

August 2000.