Uncertainties, monetary policy and financial stability: challenges on inflation targeting

Revista de Economia Política

Gabriel Caldas Montes¹ 

[1] ,Universidade Federal Fluminense Faculdade de Economia

关键词: uncertainties;    inflation targeting;    monetary policy;    financial stability;   

DOI  :  10.1590/S0101-31572010000100006

来源: SciELO

【 摘 要 】

This work aims at presenting the challenges that inflation targeting central banks may face since uncertainties represent a harmful element for the effectiveness of monetary policy, and since financial instabilities may disturb the transmission mechanisms - in particular, the expectation channel - and thus the economic stability. Financial stability must not be considered as a simple goal of monetary policy, but a precondition for central banks operate their policies and reach the goals of inflation and output stability. The work identifies different sources of uncertainties that surround central banks' decisions; and approaches the role that inflation targeting central banks should play according to some basic principles that can serve as useful guides for central banks to help them achieve successful outcomes in their conduct of monetary policy.

【 授权许可】

CC BY   
 All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License