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Inflation Targeting in Serbia

Author

Listed:
  • Jelena Fabris

    (Development Fund of the Republic of Serbia)

Abstract

Serbia introduced inflation targeting regime in August 2006. After nine years of its application, conclusions may be drawn on the (un)successfulness of the regime. Inflation targets have not been achieved during seven of nine observed years. Key difficulties in the application of the regime refer to insufficient efficiency of monetary policy instruments, insufficient confidence in the domestic currency (widely spread informal euroisation), and indexing of prices according to the exchange rate. The paper consists of four sections. The first section analyses theoretical assumptions of the inflation targeting regime. The second part describes the characteristics of the regime in Serbia. The third section analyses results, while the fourth section analyses the reasons for insufficient efficiency of the regime and gives actual suggestions for improving the existing regime.

Suggested Citation

  • Jelena Fabris, 2015. "Inflation Targeting in Serbia," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 4(2), pages 59-74.
    • Handle: RePEc:cbk:journl:v:4:y:2015:i:2:p:59-74
    as

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    File URL: http://www.cbcg.me/repec/cbk/journl/vol4no2-4.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Serbia; monetary policy; inflation targeting;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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