Inflation Targeting in Practice
34 Pages Posted: 15 Feb 2006
Date Written: March 1997
In recent years, an inflation targeting framework for monetary policy has been adopted in a number of industrial countries. This paper discusses the practical issues that have arisen under the operation of the new framework, and highlights five features of the framework: the assignment of the target, the interaction with other policy goals, the definition of the target, accountability and the role of inflation forecasts. The economic performance of the inflation targeting countries thus far is summarized.
Keywords: Inflation Targeting, Monetary Policy Framework
JEL Classification: E52, E58
Suggested Citation: Suggested Citation