On Target?: The International Experience with Achieving Inflation Targets
Pacific Financial Technical Assistance Centre
International Monetary Fund (IMF)
IMF Working Paper No. 05/163
This paper examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual and targeted inflation outcomes, and case studies of large inflation target misses. Inflation targets are missed about 40 percent of the time and often by substantial amounts and for prolonged periods, yet no country has dropped inflation targeting. The resilience of the inflation targeting regime is attributable to the flexibility of the framework, its high standards of transparency and accountability, and the lack of realistic alternatives.
Number of Pages in PDF File: 68
Keywords: Inflation targeting, monetary policy
JEL Classification: E52, E58, E61working papers series
Date posted: March 3, 2006
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