The Role of Inflation and its Targeting for Low-Income Countries (Lessons from Post-Communist Georgia)
European Journal of Economic Studies, Vol. 6, Issue 2, 2017
Posted: 6 Sep 2017
Date Written: August 30, 2017
The inflation index regrettably fails to fully reflect the expectation of the population in developing and, especially, poorer countries. Some of the commodity groups (e.g. electronics, new and used cars, furniture, hotel and restaurant services, etc.) fails to reflect the problem of the low-income population. Under these conditions, a logical question arises concerning the kinds of problems which might occur when the main goal for a central bank’s monetary policy is only to retain price stability, which is known as inflation targeting.
Keywords: Inflation, Inflation Targeting, Low-Income Population, Imflation, Agflation, Munflation
JEL Classification: E31, E42, E52
Suggested Citation: Suggested Citation