Inflatsioonieesmärkide

Inflatsioonieesmärkide, which translates to inflation targeting, is a monetary policy framework adopted by many central banks worldwide. The core principle of inflation targeting is the explicit announcement of a specific inflation rate that the central bank aims to achieve. This target is typically set for a medium-term horizon and is usually communicated to the public. The primary objective is to maintain price stability by keeping inflation close to the designated target.

Central banks employing inflation targeting utilize various monetary policy tools, such as adjusting interest rates, to influence aggregate demand and, consequently, inflation. When inflation is projected to exceed the target, the central bank may raise interest rates to cool down the economy. Conversely, if inflation is expected to fall below the target, interest rates might be lowered to stimulate economic activity. Transparency and accountability are key features of inflation targeting. Central banks are expected to regularly report on their progress towards the inflation target and explain any deviations. This openness aims to anchor inflation expectations of the public and businesses, which can contribute to achieving the target more effectively. While inflation targeting has been credited with enhancing monetary policy credibility and reducing inflation volatility in many countries, its effectiveness can depend on various factors, including the credibility of the central bank and the specific economic context.