Post-COVID Monetary Policy Challenges in Emerging Economies: Revisiting the Effectiveness of Inflation Targeting

Les défis de la politique monétaire post-COVID dans les économies émergentes: revisiter l’efficacité du ciblage de l’inflation

Abdelkader Aguir ()
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Abdelkader Aguir: ESPI - Ecole Supérieure des Professions Immobilières

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Abstract: The global COVID-19 crisis led to a major recession, following a supply and demand shock severely affecting both developed and emerging economies. Containment measures reduced demand and production, while financial market volatility impacted emerging economies. Countries' stimulus policies had mixed effects on these economies. The pandemic also disrupted global supply chains, leading to volatility in the prices of raw materials such as oil, metals and agricultural products. These fluctuations had an impact on production costs and, consequently, on the prices of final goods and services. In the wake of rising inflation, some are questioning the effectiveness of inflation-targeting policies. Our study evaluates the performance of this monetary regime in the face of crisis, estimating the efficiency frontier: inflation variability - output variability, which allows us to deduce measures of economic performance and measures of the efficiency of monetary policy in the face of an economic crisis.

Keywords: Monetary Policy; Covid Crisis; Inflation Targeting Policy; Efficiency Frontier (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-mon
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Published in Pakistan Journal of Life and Social Sciences (PJLSS), 2025, 23 (1), ⟨10.57239/pjlss-2025-23.1.00705⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05136089

DOI: 10.57239/pjlss-2025-23.1.00705

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