{
  "title": "Inflation Targeting in the Context of IMF-Supported Adjustment Programs",
  "publication": "IMF Working Papers, March 1, 2001",
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  "summary": "This paper argues that the IMF's traditional monetary conditionality-a ceiling on net domestic assets of the central bank and a floor on its net international reserves-should be adapted in IMF-supported adjustment programs with countries which have a framework of explicit inflation targets for the i",
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    {
      "heading": "Central argument",
      "content": "- The IMF's traditional monetary conditionality—a ceiling on net domestic assets of the central bank and a floor on its net international reserves—should be adapted in IMF-supported adjustment programs with countries that have a framework of explicit inflation targets for the implementation of monetary policy.\n- The adaptation should enhance correspondence and consistency between:\n  - the monetary objectives of the central bank and the targets established under the IMF-supported adjustment program, and\n  - the different instruments used to achieve the policy objectives and targets."
    },
    {
      "heading": "Options reviewed and analytical approach",
      "content": "- The paper reviews various general options for adapting IMF monetary conditionality to inflation-targeting frameworks.\n- It evaluates how different conditionality designs can improve alignment between program targets and central bank objectives.\n- The analysis uses the case of Brazil as an example to demonstrate practical implementation of the reviewed options."
    },
    {
      "heading": "Brazil case example",
      "content": "- The case of Brazil is used to illustrate how the general options for adapting monetary conditionality may be implemented in practice."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Adapt IMF monetary conditionality in programs with inflation-targeting frameworks to:\n  - Improve correspondence between IMF program targets and central bank monetary objectives.\n  - Ensure consistency between the instruments (for example, controls on net domestic assets and net international reserves) and the policy objectives and targets of both the central bank and the IMF-supported program."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Inflation, Inflation targeting, Monetary base, Monetary policy, Monetary policy frameworks, Monetary stance, Money, Prices\n- Keywords: Brazil, Fund, Fund program, Inflation, Inflation Targeting, inflation targeting framework, Monetary base, monetary policy, Monetary policy frameworks, Monetary Policy Rules, Monetary stance, NIR baseline, NIR floor, NIR loss, stance vis-à-vis, WP\n\nInflation Targeting in the Context of IMF-Supported Adjustment Programs — IMF Working Paper No. 2001/031\n\n---\n\n Content in this bundle\n\n- wp0131\n  - wp0131 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0131 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/inflation-targeting-in-the-context-of-imf-supported-adjustment-programs-4016"
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    "Authors: Gerd Schwartz, Pau Rabanal, Mario I. Bléjer, Alfredo Mario Leone",
    "Published: March 1, 2001",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451845020.001",
    "The IMF's traditional monetary conditionality—a ceiling on net domestic assets of the central bank and a floor on its net international reserves—should be adapted in IMF-supported adjustment programs with countries that have a framework of explicit inflation targets for the implementation of monetary policy.",
    "The adaptation should enhance correspondence and consistency between:",
    "The paper reviews various general options for adapting IMF monetary conditionality to inflation-targeting frameworks.",
    "It evaluates how different conditionality designs can improve alignment between program targets and central bank objectives.",
    "The analysis uses the case of Brazil as an example to demonstrate practical implementation of the reviewed options.",
    "The case of Brazil is used to illustrate how the general options for adapting monetary conditionality may be implemented in practice.",
    "Adapt IMF monetary conditionality in programs with inflation-targeting frameworks to:",
    "Subject: Inflation, Inflation targeting, Monetary base, Monetary policy, Monetary policy frameworks, Monetary stance, Money, Prices",
    "Keywords: Brazil, Fund, Fund program, Inflation, Inflation Targeting, inflation targeting framework, Monetary base, monetary policy, Monetary policy frameworks, Monetary Policy Rules, Monetary stance, NIR baseline, NIR floor, NIR loss, stance vis-à-vis, WP",
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