Research Discussion Paper – RDP 2015-09 Inflation Targeting: A Victim of Its Own Success?


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This paper was presented at the RBNZ/IJCB Conference ‘Reflections on 25 Years of Inflation Targeting’, Wellington, New Zealand, 1–2 December 2014. A revised version is forthcoming in the International Journal of Central Banking. We would like to thank Troy Matheson and Emil Stavrev for sharing Matlab code used to estimate Phillips curves with time-varying coefficients. We are grateful for comments provided by Christopher Kent and Peter Tulip.