The Problems of Inflation Targeting Originate in the Monetary Theory of Knut Wicksell
The theoretical foundation of inflation targeting was laid out by the Swedish economist Knut Wicksell (1851–1926) in his groundbreaking treatise, Interest and Prices, published originally in German in 1898. Here he proposed price stability as the rule for monetary policy. Today, inflation targeting is considered the best-practice approach to monetary policy across the world. It has contributed to