What does inflation targeting mean?
Definitions for inflation targeting
in·fla·tion tar·get·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word inflation targeting.
Wikidata
Inflation targeting
Inflation targeting is an economic policy in which a central bank estimates and makes public a projected, or "target", inflation rate and then attempts to steer actual inflation towards the target through the use of interest rate changes and other monetary tools. Because interest rates and the inflation rate tend to be inversely related, the likely moves of the central bank to raise or lower interest rates become more transparent under the policy of inflation targeting. Examples: ⁕if inflation appears to be above the target, the bank is likely to raise interest rates. This usually has the effect over time of cooling the economy and bringing down inflation. ⁕if inflation appears to be below the target, the bank is likely to lower interest rates. This usually has the effect over time of accelerating the economy and raising inflation. Under the policy, investors know what the central bank considers the target inflation rate to be and therefore may more easily factor in likely interest rate changes in their investment choices. This is viewed by inflation targeters as leading to increased economic stability.
Numerology
Chaldean Numerology
The numerical value of inflation targeting in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of inflation targeting in Pythagorean Numerology is: 3
Examples of inflation targeting in a Sentence
Deputy Finance Minister Sfiso Buthelezi:
Perhaps it's a good (inflation targeting) band, but we set this 3 to 6 percent under different economic conditions, is it still relevant now? Is it a policy for all seasons?
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"inflation targeting." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/inflation+targeting>.
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