The worldwide development of the inflation targeting regime raises new and controversial issues, which the Bank of Russia too must confront.
Inflation targeting might support economic growth by lowering inflation and volatility. However, monetary policy alone cannot drive growth.
Real-world experience confirms that forward guidance makes central bank policy even more predictable.
Not so long ago, the basic principle central banks followed in their communication policy was to completely avoid communicating. Now, in the wake of a drastic change in their communication with the markets, central banks are mastering new means of communication with the public.