Inflation Targeting in Practice: Models, Forecasts, And Hunches‪.‬

Introduction Five and a half years ago in his Monnet lecture Charles Goodhart [Goodhart, 1999] was able to talk with some confidence of the features that particularly distinguished the UK's approach to inflation targeting. Today with over 20 countries, in every habitable continent, formally operating some variant of inflation targeting and many more adopting some parts of the framework, all actively sharing experience, and best practice, I suspect that most aspects of our approach would find a counterpart somewhere else in the world. But Charles's focus on the Monetary Policy Committee's (MPC) personal engagement in producing a published inflation forecast still seems to me to capture the essence of the UK's approach.