Inflation Targeting | Vibepedia

Inflation targeting is a monetary policy framework where a central bank sets an explicit inflation target and uses interest rates to achieve it. This approach aims to maintain price stability, which is considered essential for long-term economic growth. The first countries to adopt inflation targeting were New Zealand, Canada, and the United Kingdom in the early 1990s, with [[new-zealand-reserve-bank|Reserve Bank of New Zealand]] being a pioneer in this field.