Beyond Inflation Targeting: A Monetarist Review Around Inflation Targeting Performance

Daniel Garzón Hernández

Econógrafos, Escuela de Economía from Universidad Nacional de Colombia, FCE, CID

Abstract: This paper analyses the challenges that inflation targeting (INT) brought to the monetarist school of economic thought and its relationship with collateral damages as banking competition, income inequality, and technical freedom to face economic crisis. Moreover, this paper discusses how INT's implementation has faced new economic boundaries as negative interest rates and high inflation management. As a result, relationships are found between monetarism and the measurement of target inflation. However, contradictions are also found that make it necessary to reconsider and reassess the effectiveness and functioning of the policy, considering the economic conditions where it is applied and the multiple methods which economies could use to manage inflation, whenever this could be necessary.

Keywords: monetarism; inflation; expectations; inflation targeting; central banks (search for similar items in EconPapers)
JEL-codes: B22 E31 E42 E43 E52 E61 (search for similar items in EconPapers)
Pages: 14
Date: 2022-03
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Persistent link: https://EconPapers.repec.org/RePEc:col:000176:022650

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