[{"data":1,"prerenderedAt":63},["ShallowReactive",2],{"term:inflation-targeting":3},{"term":4,"related":46},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":39,"stem":40,"takeaways":41,"__hash__":45},"terms\u002Fterms\u002Finflation-targeting.md","Inflation Targeting",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-inflation-targeting","Understanding Inflation Targeting",[16,17,18],"p",{},"New Zealand pioneered formal inflation targeting in 1990; many central banks followed. The Federal Reserve adopted an explicit 2% goal in 2012.",[16,20,21],{},"A clear target anchors expectations, so temporary shocks are less likely to become persistent inflation.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","A monetary policy framework built around a publicly announced inflation target.","md",[],{},true,"\u002Fterms\u002Finflation-targeting",[35,36,37,38],"central-bank-independence","taylor-rule","inflation","monetary-policy",{"title":6,"description":28},"terms\u002Finflation-targeting",[42,43,44],"The central bank announces a numerical inflation goal.","2% is the most common target.","It works by anchoring expectations.","vUYOw8Car7f3EpfEOteNdh7SkSIqZ_tdgghdXNMJ-ZM",[47,51,55,59],{"title":48,"description":49,"path":50},"Central Bank Independence","Insulating a central bank from short-term political pressure in setting monetary policy.","\u002Fterms\u002Fcentral-bank-independence",{"title":52,"description":53,"path":54},"Inflation","The rate at which the general level of prices rises, eroding purchasing power.","\u002Fterms\u002Finflation",{"title":56,"description":57,"path":58},"Monetary Policy","How a central bank manages interest rates and the money supply to steer the economy.","\u002Fterms\u002Fmonetary-policy",{"title":60,"description":61,"path":62},"Taylor Rule","A formula suggesting where a central bank should set interest rates based on inflation and the output gap.","\u002Fterms\u002Ftaylor-rule",1793374005277]