Central Banks Are Looking for New Ways to Meet Inflation Targets
- Norway has lowered its inflation target as oil’s hold fades
- Trendsetter New Zealand is tweaking its monetary mandate
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With so many central banks failing to hit their inflation targets, some are considering changes to the tool kits they use to steer their economies.
Norway’s decision to lower its price target is just the latest example, and follows more or less official adjustments in Sweden, Argentina and the euro area. Even in New Zealand, the birthplace of inflation targeting, the central bank is shifting to a broader goal that includes a focus on employment.