Lesson 2 of 6

Mandates, independence and inflation targets

The law tells a central bank what to aim for, independence gives it room to pursue that aim, and several of the central banks in this lesson work to a numerical inflation target that the public can check them against. This lesson compares the mandates of the US Federal Reserve, the European Central Bank, Bank Negara Malaysia and Bank Indonesia, explains why independence matters, and shows how Thailand, Indonesia and the Philippines set their inflation targets.

Published 15 October 2026