intermediate targets

Intermediate targets

An intermediate target is a variable (such as the money supply) that is not directly under the control of the central bank, but that does respond fairly quickly to policy actions, is observable frequently and bears a predictable relationship to the ultimate goals of policy.

Intermediate Target

Anything under indirect as opposed to direct control of a central bank. An example is money supply; a central bank usually cannot shred dollars when it wishes to reduce the money supply. Rather it raises interest rates, which provides an incentive for people to reduce the amount of money they pump into the economy.

intermediate targets

References in periodicals archive ?
He urged the G8 to send a strong political signal by setting a long-term goal of halving greenhouse gas emissions by 2050, backed by intermediate targets to reduce energy consumption.
Second, intermediate targets are essential for political accountability.
A number of intermediate targets will be set to grant asylum or deport 35% of new claimants within six months by next April, 60% by December 2008 and 75% by December 2009.
And at all times, central banks should keep the public focused on goals and outcomes, and not get hung up on the appearance of intermediate targets or policy instruments, which in the end the public and markets correctly discount as of little importance.
Any fundamental advances in health and education from devolution would not yet be apparent but improvements in organisation might well be reflected in intermediate targets, such as Welsh hospital patient waiting times.
The author highlights the objectives, the intermediate targets of monetary policy, and the instruments used.
These changes weakened those aggregates' link with nominal GDR and in 1993 the Federal Open Market Committee stopped using the aggregates as intermediate targets for monetary policy Since 1993, researchers have looked for other monetary aggregates that could be used as an intermediate target, MZM among them.
But the countries that have chosen to use inflation targets have typically had three key characteristics in common: a history of relatively high rates of inflation, floating exchange rates (either voluntary or forced), and monetary aggregates without sufficient stability to serve as intermediate targets.
While these scientists knew that intermediate targets such as the floor plate gave directional cues to growing axons, they had had no clear-cut evidence that these targets also provide factors that kept the nerve cells from committing suicide.
The conduct of monetary policy involves having ultimate and intermediate targets.
Either intermediate targets like money and exchange rates bear a stable relationship to long-run objectives like inflation or they do not.
A related issue concerns the usefulness of intermediate targets.

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