Inflation Targeting Regimes

Author/Editor:

Alina Carare ; Mark R. Stone

Publication Date:

January 1, 2003

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 classifies countries that define their monetary policy framework by an inflation target into full-fledged inflation targeters, eclectic inflation targeters and inflation targeting lite regimes. This classification is based on indicators of the clarity and credibility of the commitment to the inflation target. The three regimes can be viewed as corresponding to different welfare maximizing combinations of policy objectives, each conditional on a country's "endowed" level of credibility. The credibility of the regimes is related empirically to structural differences. Policy implications are drawn, especially for emerging market countries aiming at full-fledged inflation targeting.

Series:

Working Paper No. 03/9

Subject:

English

Publication Date:

January 1, 2003

ISBN/ISSN:

9781451842616/1018-5941

Stock No:

WPIEA0092003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

37

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