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An Evaluation of Inflation Targeting in Germany and the UK

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Frowen, S., Karakitsos, E. An Evaluation of Inflation Targeting in Germany and the UK. Credit and Capital Markets – Kredit und Kapital, 30(4), 501-532. https://doi.org/10.3790/ccm.30.4.501
Frowen, Stephen F. and Karakitsos, Elias "An Evaluation of Inflation Targeting in Germany and the UK" Credit and Capital Markets – Kredit und Kapital 30.4, 1997, 501-532. https://doi.org/10.3790/ccm.30.4.501
Frowen, Stephen F./Karakitsos, Elias (1997): An Evaluation of Inflation Targeting in Germany and the UK, in: Credit and Capital Markets – Kredit und Kapital, vol. 30, iss. 4, 501-532, [online] https://doi.org/10.3790/ccm.30.4.501

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An Evaluation of Inflation Targeting in Germany and the UK

Frowen, Stephen F. | Karakitsos, Elias

Credit and Capital Markets – Kredit und Kapital, Vol. 30 (1997), Iss. 4 : pp. 501–532

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Article Details

Author Details

Stephen F. Frowen, London

Elias Karakitsos, London

References

  1. Ammer, J. and Freeman, R.T. (1994). Inflation targeting in the 1990s: the experiences of New Zealand, Canada and the United Kingdom. International Finance Discussion Paper 473. Washington D.C.: Board of Governors of the Federal Reserve System.  Google Scholar
  2. Arestis, P., Biefang-Frisancho Mariscal, I, and Howells, P. (1993). UK monetary aggregates: definition and control. In Arestis, P. (ed.) (1993), Money and Banking: issues for the twenty-first century. Essays in honour of Stephen F. Frowen. London: Macmillan; New York: St. Martin’s Press, 163 - 191.  Google Scholar
  3. Bank of England (1971). Competition and Credit Control. London.  Google Scholar

Abstract

The authors compare the policies and results of the British and German authorities towards the control of inflation since the 1950s. They contrast and explain the long-term emphasis on price stability in Germany with the variable experiences in Britain which have resulted from political pressures, a less stringent and less consistent attitude towards price stability until the 1990s, and the different status of the central bank. The trends in monetary policy and implementation problems in Britain since leaving the ERM in 1992, including the new framework of monetary policy announced by the Labour government elected on May 1 1997, are reviewed, and the authors offer a theoretical framework for comparing inflation targeting, supported by detailed figurative analyses.