Inflation Targeting and Behavioural Economics: Introduction

This contribution can be understood as a theoretical introductory chapter which focuses on an increasingly widespread monetary regime – inflation targeting within a relatively new economic field – Behavioural economics. Mainstream economics have a tendency to ignore the relatively extensive and deep knowledge of humanities sciences dealing with human behaviour and decision-making processes. Why not improve the standing economical models and the current paradigma with this knowledge? The target of this paper is to outline the possibilities of using behavioural economics to improve inflation targeting.