At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, variables that will equalize the central bank's target rate of inflation are both the current and expected rates of inflation.
This happens in the case of inflation targeting.
In inflation targeting the central bank forecasts the future path of inflation and compares the result with the target inflation rate ,target inflation rate is the the rate which the government believes is appropriate for the economy.
The difference between the forecast and the target explains how much monetary policy has to be adjusted for it. Some countries have chosen inflation targets with symmetrical ranges around a midpoint, while others have identified only a target rate or an upper limit to inflation.
Most countries do set their inflation targets in the very low single digits. A major advantage of inflation targeting is that inflation targeting combines elements of both “discretion” and “rules” in the given monetary policy.
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