Inflation targeting is a method used by central banks to maintain stable prices by aiming for a specific inflation rate, typically between 2% and 3% annually in many developed nations. The key concept ...

The real economic growth rate removes inflation in its measurement of economic growth, unlike the nominal GDP growth rate. Real GDP can be calculated by adjusting nominal GDP by inflation.

The definition of maximum employment, on the other hand, is a lot murkier. “There is not an explicit target for unemployment like there is for inflation,” said Stockwell. “But to keep ...