Modalities of Moving to Inflation Targeting in Armenia and Georgia

 
Author/Editor: Dabla-Norris, Era ; Kim, Daehaeng ; Zermeno Livas, Mayra Rebecca ; Billmeier, Andreas ; Kramarenko, V.
 
Publication Date: June 01, 2007
 
Electronic Access: Free Full text (PDF file size is 417KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
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 reviews the current monetary and exchange rate policy frameworks in Armenia and Georgia, and the challenges associated with the choice of a credible nominal anchor in the context of large nominal and real shocks. The paper makes a case for a gradual transition to full-fledged inflation targeting (FFIT) in both countries in the medium term. The implications of this option are examined from various angles. In particular, the monetary transmission mechanisms and compliance with major institutional prerequisites for successful FFIT adoption are analyzed. Based on this analysis, the paper identifies a series of short- and medium-term recommendations, drawing on the experience of emerging market countries that successfully moved to FFIT.
 
Series: Working Paper No. 07/133
Subject(s): Armenia | Georgia | Monetary policy | Inflation targeting

Author's Keyword(s): Armenia | Georgia | monetary policy | inflation targeting
 
English
Publication Date: June 01, 2007
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2007133 Pages: 36
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org