On Target? the International Experience with Achieving Inflation Targets

Author/Editor:

Scott Roger ; Mark R. Stone

Publication Date:

August 1, 2005

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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 examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual and targeted inflation outcomes, and case studies of large inflation target misses. Inflation targets are missed about 40 percent of the time and often by substantial amounts and for prolonged periods, yet no country has dropped inflation targeting. The resilience of the inflation targeting regime is attributable to the flexibility of the framework, its high standards of transparency and accountability, and the lack of realistic alternatives.

Series:

Working Paper No. 2005/163

Subject:

Banking Consumer price indexes Disinflation Emerging and frontier financial markets Financial markets Inflation Inflation targeting Monetary policy Prices

English

Publication Date:

August 1, 2005

ISBN/ISSN:

9781451861822/1018-5941

Stock No:

WPIEA2005163

Pages:

68

Please address any questions about this title to publications@imf.org