Transparency and communication improves the efficiency of monetary policy
Kilponen, Juha (24.08.2018)
JulkaisusarjaBank of Finland Bulletin. Blog
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201808281993
Inflation-targeting central banks adjust their interest rates in response to inflation. If inflation is well below target and monetary policy is credible, consumers and investors should expect interest rates to fall. If, instead, inflation is above target, they should place a high probability on interest rates being hiked in the near future.