An evaluation of financial targets in six countries

Abstract

In formulating and implementing their monetary policies, central banks generally aim at bringing about changes in certain financial variables as a first step in their efforts to influence the ultimate targets of policy. The present work surveys the financial targets of six central banks, focusing particularly on the distinction between operating and intermediate targets. A general framework is then presented by which to evaluate the diverse financial targets. Concluding and general comments on the analysis are then provided.

JEL: E52, E58