A Dynamic Approach to Inflation Targeting in Transition Economies

Lucjan Orlowski

Macroeconomics from University Library of Munich, Germany

Abstract: This study views inflation targeting as a viable regime for more advanced transition economies. A dynamic approach to the trajectory of disinflation and the flexibility of direct inflation targeting is presented in the context of achieving monetary convergence to the EU/EMU. The candidate countries are advised to begin from strict inflation targeting and to follow with a more flexible inflation targeting regime before they establish a necessary 'foundational credibility' and monetary stability. These steps, ultimately followed by the euro-peg, are necessary in preparing for accession to the eurozone. The early experiences of the Czech Republic and Poland with inflation targeting are examined.

JEL-codes: E32 E52 P33 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2005-01-31
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-tra
Note: Type of Document - pdf; pages: 55
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0501038

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