Inflation Targeting as a Framework for Monetary Policy

Guy Debelle (), Miguel Savastano, Paul Masson and Sunil Sharma ()

No 1998/005, IMF Economic Issues from International Monetary Fund

Abstract: Inflation distorts prices, erodes savings, discourages investment, stimulates capital flight, inhibits growth, and makes economic planning a nightmare. During the past decade, several advanced economies have taken a new approach to the age-old problem of controlling inflation through monetary policy known as "inflation targeting." This pamphlet explains the requirements of putting the new policy in place, the experience of the countries that have tried it, and whether it has applicability to developing countries.

Keywords: EI; country; government; inflation-targeting country; monetary policy setting; inflation-targeting approach; government operation; monetary policy credibility; price level; inflation-targeting system; inflation expectation; monetary policy statement; Inflation targeting; Inflation; Monetary policy frameworks; Exchange rates; Monetary policy instruments; Africa (search for similar items in EconPapers)
Pages: 20
Date: 1998-10-02
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