Research Discussion Paper – RDP 2015-09 Inflation Targeting: A Victim of Its Own Success?

Contents

• Introduction
• The Past 25 Years
• The Next 25 Years
• Conclusion
• References

The Discussion Paper series is intended to make the results of the current economic research within the Reserve Bank available to other economists. Its aim is to present preliminary results of research so as to encourage discussion and comment. Views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank. Use of any results from this paper should clearly attribute the work to the authors and not to the Reserve Bank of Australia.

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This paper was presented at the RBNZ/IJCB Conference ‘Reflections on 25 Years of Inflation Targeting’, Wellington, New Zealand, 1–2 December 2014. A revised version is forthcoming in the International Journal of Central Banking. We would like to thank Troy Matheson and Emil Stavrev for sharing Matlab code used to estimate Phillips curves with time-varying coefficients. We are grateful for comments provided by Christopher Kent and Peter Tulip.