Establishing Initial Conditions in Support of Inflation Targeting

Author/Editor:

Mark Zelmer ; Andrea Schaechter ; Mark R. Stone ; Alina Carare

Publication Date:

June 1, 2002

Electronic Access:

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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 provides some practical advice on establishing initial conditions in support of an inflation-targeting monetary framework. These conditions are divided into four areas: a mandate in support of an inflation objective and accountability for achieving this objective; macroeconomic stability; a sufficiently well-developed and stable financial system; and effective policy implementation tools. The measures taken by countries to meet these conditions are also reviewed.

Series:

Working Paper No. 02/102

Subject:

Central banks Central banks and their policies Inflation targeting Monetary policy

English

Publication Date:

June 1, 2002

ISBN/ISSN:

9781451852622/1018-5941

Stock No:

WPIEA1022002

Format:

Paper

Pages:

39

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