## Inflation Targeting as a Framework for Monetary Policy

_Economic Issues, October 2, 1998_

## Source details

**Canonical URL:** [Inflation Targeting as a Framework for Monetary Policy](https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/inflation-targeting-as-a-framework-for-monetary-policy-2747)

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## Bibliographic details
- Authors: Guy Debelle, Miguel A Savastano, Paul R Masson, Sunil Sharma
- Published: October 2, 1998
- Series: Economic Issues
- DOI: https://doi.org/10.5089/9781557757616.051

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### Summary
- Inflation distorts prices, erodes savings, discourages investment, stimulates capital flight, inhibits growth, and makes economic planning a nightmare.
- Several advanced economies adopted "inflation targeting" during the past decade as a monetary policy approach to control inflation.
- The pamphlet explains:
  - the requirements of putting inflation targeting in place,
  - the experience of countries that have tried it,
  - whether inflation targeting has applicability to developing countries.

### Authors and Publication
- Authors: Guy Debelle, Miguel A Savastano, Paul R Masson, Sunil Sharma
- Publication date: October 2, 1998
- Series: Economic Issues No. 1998/005
- Issue: 005
- Volume: 1998

### Core findings and analysis
- Inflation has wide-ranging negative effects on economies, including on prices, savings, investment, capital flows, growth, and economic planning.
- Inflation targeting emerged as a distinct monetary policy framework adopted by several advanced economies in the decade preceding publication.
- The pamphlet addresses both practical implementation requirements and empirical experiences from countries that implemented inflation targeting.

### Requirements for implementing inflation targeting (as described)
- The pamphlet explains the institutional and operational requirements for putting inflation targeting into place (details summarized in the pamphlet itself).

### Applicability to developing countries
- The pamphlet examines whether the inflation-targeting framework has applicability to developing countries, considering the experiences and requirements discussed.

### Subjects and keywords (as listed)
- Subjects: 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

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_Source: https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/inflation-targeting-as-a-framework-for-monetary-policy-2747_