Title

The Instrument-Rate Projection under Inflation Targeting: The Norwegian Example

Author(s)

Lars E.O. Svensson Lars Svensson (Princeton University, CEPR, and NBER)

Abstract

The introduction of inflation targeting has led to major progress in practical monetary policy. Recent debate has focused on the interest-rate assumption underlying published projections of inflation and other target variables. This paper discusses the role of alternative interest-rate paths in the monetary-policy decision process and the recent publication by Norges Bank (the central bank of Norway) of optimal interest-rate projections with fan charts.

Creation Date

2006-05

Section URL ID

CEPS

Paper Number

127

URL

https://gceps.princeton.edu/wp-content/uploads/2017/01/127svensson.pdf

File Function

Jel

E42, E52, E58

Keyword(s)

Forecasts, flexible inflation targeting, optimal monetary policy, Norway

Suppress

false

Series

3