Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209809 
Authors: 
Year of Publication: 
2002
Series/Report no.: 
Working Paper No. 2002/10
Publisher: 
Norges Bank, Oslo
Abstract: 
This paper discusses the optimal use of inflation forecasts in an inflation targeting setting with reaction and implementation lags. It distinguishes between the optimality of history-dependence versus forward-lookingness in monetary policymaking. It is shown that monetary policy strategy is inverted relative to private sector pricing behaviour: if private sector price setting is backward-looking, policy should be forward-looking, and vice versa.
Subjects: 
monetary policy
targeting rule
optimal horizon
history dependence
JEL: 
E52
E61
Persistent Identifier of the first edition: 
ISBN: 
82-7553-201-9
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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