At a Glance - Is Nominal GDP Targeting a Suitable Tool for ECB Monetary Policy? - PE 570.001 - Committee on Economic and Monetary Affairs

Inflation targeting has been widely considered as the most suitable approach to maintain price stability and support growth. Inflation targeting is a monetary policy in which a central bank has an explicit target inflation rate for the medium term and announces this inflation target to the public. Inflation targeting was pioneered by the central bank of New Zealand in 1990 and today it is used by several key central banks, including the European Central Bank (ECB), the US Federal Reserve and the Bank of Japan.