Economic Issues

Inflation Targeting as a Framework for Monetary Policy

By Guy Debelle, Miguel A Savastano, Paul R Masson, Sunil Sharma

October 2, 1998

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Guy Debelle, Miguel A Savastano, Paul R Masson, and Sunil Sharma. Inflation Targeting as a Framework for Monetary Policy, (USA: International Monetary Fund, 1998) accessed October 14, 2024

Summary

Inflation distorts prices, erodes savings, discourages investment, stimulates capital flight, inhibits growth, and makes economic planning a nightmare. During the past decade, several advanced economies have taken a new approach to the age-old problem of controlling inflation through monetary policy known as "inflation targeting." This pamphlet explains the requirements of putting the new policy in place, the experience of the countries that have tried it, and whether it has applicability to developing countries.

Subject: Banking, Exchange rates, Foreign exchange, Inflation, Inflation targeting, Monetary policy, Monetary policy frameworks, Monetary policy instruments, Prices

Keywords: Africa, Country, EI, Exchange rates, Government, Government operation, Inflation, Inflation expectation, Inflation targeting, Inflation-targeting approach, Inflation-targeting country, Inflation-targeting system, Monetary policy credibility, Monetary policy frameworks, Monetary policy instruments, Monetary policy setting, Monetary policy statement, Price level

Publication Details

  • Pages:

    20

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Economic Issues No. 1998/005

  • Stock No:

    EIIEA0151996

  • ISBN:

    9781557757616

  • ISSN:

    1020-5098