Inflation targets

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  • Created by: Lottie
  • Created on: 20-05-12 09:48

UK

  • Bank of England monetary policy comitteee sets interest rates with a view to meeting the inflation target over the next two years
  • the governor of the bank had to write an open letter to the chancellor explaning the reasons for the inflation under/over shoot
  • MPC take steps to bring inflation within the target zone again

ADVANTAGES OF AN INFLATION TARGET

  • reduce inflationary expectations
  • ppl will demand lower wage rises if they believe that there will be…

Comments

davidsalter

A brief but comprehensive set of notes on the advantages and disadvantages of inflation targets.

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