Inflation Targeting Is a Success, So Far: 100 Years of Evidence from Swedish Wage Contracts
We evaluate the Swedish inflation targeting regime adopted in 1993-1995 using a novel approach based on a unique data set on the characteristics of collective wage agreements between 1908 and 2008. We find that the inflation targeting regime of 1995-2008 stands out as an exceptionally stable policy regime as judged by the willingness of wage contract-makers to repeatedly commit to three-year non-i