Symmetrical Inflation Target

A symmetrical inflation target is a requirement placed on a central bank to respond when inflation is too low as well as when inflation is too high.

For example, the Bank of England and the Bank of Canada have symmetrical inflation targets. In contrast, the European Central Bank has a non-symmetrical inflation target—it is compelled to take action only when inflation is too high.


Famous quotes containing the words symmetrical and/or target:

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    Benjamin Harrison (1833–1901)

    Well gentlemen, this is it. This is what we’ve been waiting for. Tonight your target is Tokyo. And you’re gonna play ‘em the Star Spangled Banner with two-ton bombs. All you’ve got to do is to remember what you’ve learned and follow your squadron leaders. They’ll get you in, and they’ll get you out. Any questions? All right that’s all. Good luck to you. Give ‘em hell.
    Dudley Nichols (1895–1960)