Inflation Targeting: Assessing the Evidence

  • Alvaro Angeriz
  • Philip Arestis
Chapter

Abstract

Inflation targeting (IT) as a policy framework, designed to tame inflation, has been with us since the early 1990s. Recent work makes the point that a significant number of countries adopted this strategy, and the number is growing. For example, Sterne (2002) suggests that 54 countries pursued one form or another of IT by 1998, compared with only six in 1990. A more recent study (IMF, 2005) suggests that 21 countries (8 developed and 13 emerging) are now clear inflation targeters, pursuing a fully-fledged IT strategy (FFIT). Indeed, a number of other countries are seriously considering the adoption of this strategy. Many studies have attempted to examine empirically the degree and extent of the impact of IT on inflation in various countries. We review this literature in what follows and conclude that the available empirical evidence produces mixed results.

Keywords

Exchange Rate Interest Rate Monetary Policy Central Bank International Monetary Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Alvaro Angeriz and Philip Arestis 2007

Authors and Affiliations

  • Alvaro Angeriz
  • Philip Arestis

There are no affiliations available

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