https://wiki.treasurers.org/w/index.php?action=history&feed=atom&title=Flexible_inflation_targeting 2026-08-10T19:28:47Z Revision history for this page on the wiki MediaWiki 1.40.0 https://wiki.treasurers.org/w/index.php?title=Flexible_inflation_targeting&diff=21497&oldid=prev 2022-01-23T06:23:43Z

<p>Create page - source - Letter from UK Chancellor of the Exchequer to Governor of Bank of England - 16 December 2021</p> <p><b>New page</b></p><div>''Monetary policy - central bank independence - interest rates - inflation - inflation targets.''<br /> <br /> Operationally independent central banks generally work with an inflation target set by the central government in their jurisdiction.<br /> <br /> The central bank then adjusts interest rates and other tools of monetary policy to work toward the target rate of inflation.<br /> <br /> <br /> A &quot;flexible&quot; approach to inflation targeting means that the central bank will also work toward full employment and appropriate rates of economic growth.<br /> <br /> Under flexible approaches, the central bank - and government - will tolerate periods of above-target inflation, in order to support employment and growth.<br /> <br /> <br /> For example, during a period of above-target inflation, interest rate rises may accordingly be smaller - or deferred - in order not to damage growth and employment.<br /> <br /> <br /> :&lt;span style=&quot;color:#4B0082&quot;&gt;'''''UK government committed to flexible inflation targeting'''''&lt;/span&gt;<br /> <br /> :&quot;The [UK] Government's commitment to the Bank of England's operational independence and the current regime of flexible inflation targeting remains absolute.<br /> <br /> :The [2% CPI inflation] target is symmetric: deviations below the target are treated in the same way as deviations above the target.<br /> <br /> :This institutional structure helps to ensure that inflation expectations remain anchored and that monetary policy can play its role fully.&quot;<br /> <br /> :''Letter from UK Chancellor of the Exchequer to Governor of Bank of England - December 2021.''<br /> <br /> <br /> == See also ==<br /> * [[Bank of England]]<br /> * [[Central bank independence]]<br /> * [[Consumer Prices Index]] (CPI)<br /> * [[Inflation]]<br /> * [[Inflation target]]<br /> * [[Monetary policy]]<br /> * [[Monetary Policy Committee]]<br /> * [[Official Bank Rate]]<br /> <br /> [[Category:Accounting,_tax_and_regulation]]<br /> [[Category:The_business_context]]<br /> [[Category:Identify_and_assess_risks]]<br /> [[Category:Manage_risks]]<br /> [[Category:Risk_frameworks]]<br /> [[Category:Risk_reporting]]</div>

imported>Doug Williamson