Arthur Grimes

Arthur Grimes appears in Our mission: Find the world’s best economic ideas (Summer School World Tour) as the New Zealand economist who helped design Inflation Targeting. The episode says he worked as chief economist at the Reserve Bank of New Zealand, studied other countries’ inflation-control methods around 1985 and 1986, and proposed targeting inflation directly.

The source presents Grimes’ 0% to 2% by 1992 target as both technical policy and communication strategy. The target made low inflation legible enough for Don Brash to try to make expectations coordinate around it.

Connections

• New Zealand / 新西兰 and Reserve Bank of New Zealand - country and institution.
• Inflation Targeting, Multiple Equilibria, and Central Bank Independence - concepts tied to his policy design.
• Don Brash - central banker who implemented the disinflation.