Inflation Forecast Contracts

Research, Preprint OPEN
Gersbach, Hans; Hahn, Volker;
(2011)
  • Publisher: Zurich: ETH Zurich, CER-ETH - Center of Economic Research
  • Related identifiers: doi: 10.3929/ethz-a-006562013
  • Subject: central banks; incentive contracts; inflation forecast targeting; inflation targeting; intermediate targets; transparency | Leistungsanreiz | central banks | incentive contracts | E58 | Politische Kommunikation | Central banks; Transparency; WIRTSCHAFTSPROGNOSEN; WIRTSCHAFTSPOLITISCHE INSTRUMENTE UND MASSNAHMEN; Incentive contracts; NATIONAL BANKS + CENTRAL BANKS; Intermediate targets; ECONOMIC MEASURES AND INSTRUMENTS; Inflation forecast targeting; INFLATION; Inflation targeting; ECONOMIC FORECASTS; NATIONALBANKEN + ZENTRALBANKEN | central banks, incentive contracts, transparency, inflation targeting, inflation forecast targeting, intermediate targets | Inflationserwartung | inflation forecast targeting | Economics | Experten | transparency | intermediate targets | inflation targeting | Inflationssteuerung | Theorie
    • jel: jel:E58
      ddc: ddc:330
    arxiv: General Relativity and Quantum Cosmology | Astrophysics::Cosmology and Extragalactic Astrophysics | Physics::Atmospheric and Oceanic Physics

We introduce a new type of incentive contract for central bankers: inflation forecast contracts, which make central bankers’ remunerations contingent on the precision of their inflation forecasts. We show that such contracts enable central bankers to influence inflation... View more
  • References (45)
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