Modalities of Moving to Inflation Targeting in Armenia and Georgia

Andreas Billmeier (), Daehaeng Kim (), Dabla-Norris, Era, V. Kramarenko and Mayra Rebecca Zermeno Livas

No 07/133, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews the current monetary and exchange rate policy frameworks in Armenia and Georgia, and the challenges associated with the choice of a credible nominal anchor in the context of large nominal and real shocks. The paper makes a case for a gradual transition to full-fledged inflation targeting (FFIT) in both countries in the medium term. The implications of this option are examined from various angles. In particular, the monetary transmission mechanisms and compliance with major institutional prerequisites for successful FFIT adoption are analyzed. Based on this analysis, the paper identifies a series of short- and medium-term recommendations, drawing on the experience of emerging market countries that successfully moved to FFIT.

New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-tra
Date: 2007-06-12
View citations in EconPapers

Downloads: (external link)
http://www.imf.org/external/pubs/ft/wp/2007/wp07133.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:imf:imfwpa:07/133

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund
Address: International Monetary Fund, Washington, DC USA
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().