It is often claimed that central bankers are less committed to their inflation targets than they were before the global financial crisis, but a closer look suggests that there has not been a dramatic change. Policymakers are prepared to tolerate inflation diverging from the target for slightly longer than previously, and they acknowledge that monetary policy may sometimes need to tackle threats to financial stability. But the number one priority for central banks in most advanced economies is still to hit an inflation target of around 2%. Inflation targeting has also become more common in emerging economies.
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