Economics B A-Level
Inflation targeting
What Inflation targeting means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Inflation targeting
Check what you remember
Read the wording for your board, then hide it and explain Inflation targeting in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The primary objective of meeting the government's inflation target, currently 2% as measured by the Consumer Prices Index.
Topics that use Inflation targeting
- The role of the central bank (Pearson Edexcel A-Level)
Related terms
- Base rate
- Central bank
- Central banking
- Financial stability
- Inflationary pressures
- Liquidity and solvency
- Macroprudential regulation
- Monetary policy
Using Inflation targeting in the exam
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