This approach to policy – which is the standard one followed by most leading central banks around the world – is called inflation targeting. But there is an alternative: The FOMC could target a slightly higher inflation rate for a few years after 2018 in order to make up for the shortfall in the price level.
The subject of analysis will be six work areas in the competence of the National Bank of Serbia. They will be thoroughly examined by experts from the European Central Bank and 17 partner central banks involved in the project over the next nine months, by the end of May of 2009.