From the Introduction:
Most advanced economy central banks use inflation targets as the main element in guiding the day-today conduct of monetary policy. But central banks exist by legislative authority, and legislatures and ministers often play an important role in articulating what is expected from the monetary policy powers of the central bank. How these expectations are specified differs widely across countries. Some countries articulate expectations of monetary policy in more detail than others. History also matters: older legislation looks different than new legislation. However, whether with the active or more passive involvement of governments, each country has settled on an inflation target as the best practical way for the central bank to achieve what society is looking for, or can expect from, monetary policy.
This article reviews the legislative provisions articulating what society expects of monetary policy (and any other statutorily required documents, and nonstatutory but formal public agreements between a central bank and the government in this area) for a sample of operationally independent central banks with published inflation targets. The sample encompasses all but a handful of advanced economies. The table in Appendix 1 summarises the material.
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