IMF Working Papers

On Target? the International Experience with Achieving Inflation Targets

By Scott Roger, Mark R. Stone

August 1, 2005

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Scott Roger, and Mark R. Stone On Target? the International Experience with Achieving Inflation Targets, (USA: International Monetary Fund, 2005) accessed September 19, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Consumer price indexes, Disinflation, Emerging and frontier financial markets, Financial markets, Inflation, Inflation targeting, Monetary policy, Prices

Keywords: Africa, Consumer price indexes, Core inflation, Disinflation, Emerging and frontier financial markets, Emerging market, Inflation, Inflation experience, Inflation outcome, Inflation performance, Inflation target, Inflation target policy horizon, Inflation targeters, Inflation targeting, Inflation targeting central bank, Inflation targeting countries transparency, Inflation targeting framework, Inflation targeting range, Inflation volatility, Monetary policy, Policy horizon, Targeted inflation, WP

Publication Details

  • Pages:

    68

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2005/163

  • Stock No:

    WPIEA2005163

  • ISBN:

    9781451861822

  • ISSN:

    1018-5941