The differences between inflation targeting, average inflation targeting and yield curve control

Traditionally, central banks used inflation targeting when, in the middle of expansion periods after a recession , inflation returned to the level of the inflation target, they had to switch to a more restrictive monetary policy. The Federal Reserve has now announced that it will use average inflation targeting. The average inflation over a long period of time must return to the level of the inflation target. When inflation has been lower than the target during a recession, it must then subsequently be higher than the target: this means that central banks will continue to maintain an expansionary monetary policy in growth periods, probably until full employment has been restored. Lastly, yield curve control, used by the Bank of Japan, means that the central bank controls long-term interest rates. It leads to an even more expansionary monetary policy than average inflation targeting, since the more the expansion period advances, the more the normal tendency is for long-term interest rates to rise. This requires an increasingly expansionary monetary policy in growth periods.