Since 1989, most central banks around the world have adopted an inflation targeting regime. This column argues that credit for how much inflation targeting (IT) contributed to the pre-2021 decades of low inflation has run ahead of the evidence. Forces such as globalisation and simple ‘regression to the mean’ should be taken seriously, alongside inflation targeting adoption, as explanations for low inflation between 1989 and 2021. Going forward, inflation targeting must evolve to survive and

Tag-uri: Inflatie