© 2019

Inflation Targeting and Financial Stability

Monetary Policy Challenges for the Future


Table of contents

  1. Front Matter
    Pages i-xiv
  2. Michael Heise
    Pages 1-4
  3. Michael Heise
    Pages 51-73
  4. Michael Heise
    Pages 91-94
  5. Back Matter
    Pages 95-111

About this book


Since the financial crisis of 2008/09, the world’s major central banks have been struggling to return their economies to higher growth and to reach their inflation targets.
This concise book analyzes the importance of central bank policies for the economy, and specifically investigates the reasons why they have failed to steer inflation as desired. The author, the Chief Economist at Allianz SE, argues that, in an environment of great uncertainty concerning the pass-through of monetary stimulus to the economy, central banks should not focus too narrowly on inflation targets, but should increasingly take the side effects of their actions into account. In particular, he contends that they must seek to minimize the risk of financial booms and busts in order to maximize long-term growth and prosperity.
Building on existing research and contributing to the current debate, the book offers a valuable reference guide and food for thought for policymakers, professionals and students alike.


Monetary Poliy Interest Rates/Term Premia Transmission Channels of Monetary Policy Inflation Targeting Financial Cycle Financial Stability

Authors and affiliations

  1. 1.Allianz SEMünchenGermany

About the authors

Michael Heise is Global Chief Economist at Allianz SE, where he advises the board on economic and strategic issues. He is responsible for the analysis and forecasts of the international economy, and for financial markets and risk analysis. Heise studied and graduated from Cologne University and teaches as a honorary professor at the Johann Wolfgang Goethe University in Frankfurt-am-Main. Before joining the Allianz Group, Heise was Secretary General of the German Council of Economic Experts, Chief Economist and Head of Research at DZ Bank.

Bibliographic information

Industry Sectors
Finance, Business & Banking


“This well written, accessible book focuses on the eurozone, the disappearance of inflation is a phenomenon that has gone global. … Heise’s arguments, well expressed and easy to follow, are not merely theoretical musings.” (Claire Jones, Financial Times,, June 03, 2019)