In recent years, for example, we have observed a greater focus by some inflation-targeting central banks on the medium and long-term horizon and on the role of money and credit growth in determining medium to long-term inflation trends and in influencing asset price dynamics. Core versus headline inflation Despite the convergence of many aspects of the monetary policy strategies, there are still important differences.
One such difference is whether the operational target for inflation should be the headline or a core measure of inflation. Alan has declared that he is firmly in the “core” camp for several reasons.