THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS 500

468 PA R T V Central Banking and the Conduct of Monetary Policy (a) New Zealand Inflation (%) 20 Inflation targeting begins Target range 15 Target midpoint 10 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (b) Canada Inflation (%) 15 Inflation targeting begins 10 Target range Target midpoint -2 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (c) United Kingdom Inflation (%) 25 Inflation targeting begins 20 Target range Target midpoint 15 10 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 F I G U R E 18 - Inflation Rates and Inflation Targets for New Zealand, Canada, and the United Kingdom, 1980 2008 (a) New Zealand; (b) Canada; (c) United Kingdom Source: Ben S Bernanke, Thomas Laubach, Frederic S Mishkin, and Adam S Posen, Inflation Targeting: Lessons from the International Experience (Princeton: Princeton University Press, 1999), updates from the same sources, and www.rbnz.govt.nz/statistics/econind/a3/ha3.xls