Some CPI indexes inappropriate for inflation targeting, says Leyland
The construction of some indexes of inflation and the use of a single index to meet multiple goals, including that of inflation targeting, may need to change, if central banks want to fulfil their mandates appropriately, according to Jill Leyland, a vice-president of the Royal Statistical Society.
Leyland explains in a forthcoming edition of the Central Banking Journal that the majority of consumer price indexes (CPIs) were originally designed as ‘escalators' for the purposes of adjusting wages
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