ABSTRACT

Domestic targets – targets for monetary policy expressed in terms of domestic monetary variables such as growth of monetary or price aggregates – are an ubiquitous element of monetary policy frameworks. This chapter analyses their role in the monetary policy of Central European countries. It is divided into two parts – one section deals with targeting money, the subsequent group series of sections focuses on targeting inflation. That distinction is, however, to some extent in the eye of the beholder. Nonetheless, it is conceptually useful and conforms to the standard classification of the various mechanisms for constraining the discretion of the authorities in monetary policy.