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Article: Inflation targeting serves NZ well.(NEWS RELEASES)(New Zealand)(a speech by Alan Bollard on monetary policy)(Speech)
- Article from:
- The Reserve Bank of New Zealand Bulletin
- Article date:
- September 1, 2008
CopyrightCOPYRIGHT 2008 Reserve Bank of New Zealand. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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30 July 2008
New Zealand's inflation-targeting framework continues to serve the economy well, but we should be careful not to ask too much of it, Reserve Bank Governor Alan Bollard said today.
In a speech titled "Flexibility and the Limits to Inflation Targeting", Dr Bollard said inflation targeting is the best approach New Zealand and many other similar countries have yet found for monetary policy, among a limited number of viable alternatives.
"Of course, we continue to seek improvements. But overall, and even in the current very difficult circumstances, the flexible inflation targeting framework positions us well to manage the ongoing shocks ...