Advanced Search
MyIDEAS: Login to save this paper or follow this series

On Target? the International Experience with Achieving Inflation Targets

Contents:

Author Info

  • Scott Roger
  • Mark R. Stone

Abstract

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18416
Download Restriction: no

Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/163.

as in new window
Length: 68
Date of creation: 01 Aug 2005
Date of revision:
Handle: RePEc:imf:imfwpa:05/163

Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Email:
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC

Order Information:
Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

Related research

Keywords: Inflation targeting; inflation; monetary policy; inflation target; central bank; inflation targeting framework; price stability; inflation performance; inflation targeting regime; foreign exchange; financial stability; national bank; inflation rates; monetary fund; inflation objective; measure of inflation; distribution of inflation; monetary regimes; inflation forecasts; annual inflation; monetary regime; inflation rate; lower inflation; monetary policies; monetary policy transparency; real interest rates; monetary policy decision; actual inflation; rate of inflation; experience of inflation; monetary institutions; foreign currency; average inflation; inflation-targeting; monetary economics; monetary stability; monetary frameworks; increase in inflation; monetary framework; monetary policy decisions; percent inflation; monetary targeting; money demand; real wages; monetary policy objectives; monetary processes; monetary policy instruments; rates of inflation; price level; reserve requirement; monetary control; fall in inflation; monetary policy regimes; average rate of inflation; monetary policy rules; monetary conditions; average inflation rate; inflationary pressures; reduction of inflation; monetary policy framework; monetary independence; central bank monetary policy; monetary authorities; higher rates of inflation; monetary policy implementation; inflation process; treasury securities; monetary policy strategy; monetary stance; forecasting inflation;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Svensson, Lars E. O., 2000. "Open-economy inflation targeting," Journal of International Economics, Elsevier, Elsevier, vol. 50(1), pages 155-183, February.
  2. Arminio Fraga & Ilan Goldfajn & André Minella, 2004. "Inflation Targeting in Emerging Market Economies," NBER Chapters, National Bureau of Economic Research, Inc, in: NBER Macroeconomics Annual 2003, Volume 18, pages 365-416 National Bureau of Economic Research, Inc.
  3. Frederic Mishkin & Klaus Schmidt-Hebbel, 2006. "Does Inflation Targeting Make a Difference?," Working Papers Central Bank of Chile, Central Bank of Chile 404, Central Bank of Chile.
  4. Guy Debelle & Stanley Fischer, 1994. "How independent should a central bank be?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, Federal Reserve Bank of Boston, vol. 38, pages 195-225.
  5. Miguel A. Savastano & Paul R. Masson & Sunil Sharma, 1997. "The Scope for Inflation Targeting in Developing Countries," IMF Working Papers 97/130, International Monetary Fund.
  6. Yifan Hu, 2003. "Empirical Investigations of Inflation Targeting," Working Paper Series, Peterson Institute for International Economics WP03-6, Peterson Institute for International Economics.
  7. Mark R. Stone, 2003. "Inflation Targeting Lite," IMF Working Papers 03/12, International Monetary Fund.
  8. Carlos Robalo Marques & Pedro Duarte Neves & Afonso Gonçalves da Silva, 2000. "Why Should Central Banks Avoid the Use of the Underlying Inflation Indicator?," Working Papers, Banco de Portugal, Economics and Research Department w200005, Banco de Portugal, Economics and Research Department.
  9. Gian Maria Milesi-Ferretti, & Philip R. Lane, 2003. "International Financial Integration," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp03, IIIS.
  10. Thomas Y. Wu, 2004. "Does Inflation Targeting Reduce Inflation? An Analysis for the OECD Industrial Countries," Working Papers Series, Central Bank of Brazil, Research Department 83, Central Bank of Brazil, Research Department.
  11. Edwin M. Truman, 2003. "Inflation Targeting in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 346, July.
  12. Carare, Alina & Stone, Mark R., 2006. "Inflation targeting regimes," European Economic Review, Elsevier, Elsevier, vol. 50(5), pages 1297-1315, July.
  13. Marc Zelmer & Andrea Schaechter, 2000. "Adopting Inflation Targeting," IMF Occasional Papers 202, International Monetary Fund.
  14. Mishkin, F.S., 1998. "International Experiences with Different Monetary Policy Regimes," Papers, Stockholm - International Economic Studies 648, Stockholm - International Economic Studies.
  15. Marc Zelmer & Andrea Schaechter & Mark R. Stone & Alina Carare, 2002. "Establishing Initial Conditions in Support of Inflation Targeting," IMF Working Papers 02/102, International Monetary Fund.
  16. Frederic S. Mishkin & Klaus Schmidt-Hebbel, 2001. "One Decade of Inflation Targeting in the World: What Do We Know and What Do We Need to Know?," NBER Working Papers 8397, National Bureau of Economic Research, Inc.
  17. Jiri Jonas & Frederic S. Mishkin, 2003. "Inflation Targeting in Transition Countries: Experience and Prospects," NBER Working Papers 9667, National Bureau of Economic Research, Inc.
  18. Carlos Robalo Marques, 2004. "Inflation Persistence: Facts or Artefacts?," Working Papers, Banco de Portugal, Economics and Research Department w200408, Banco de Portugal, Economics and Research Department.
  19. Vittorio Corbo & Oscar Landerretche & Klaus Schmidt-Hebbel, 2001. "Assessing Inflation Targeting after a Decade of World Experience," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 51, Oesterreichische Nationalbank (Austrian Central Bank).
  20. Eric V. Clifton, 1999. "Inflation Targeting," IMF Policy Discussion Papers 99/8, International Monetary Fund.
  21. Frederic S. Mishkin, 2004. "Can Inflation Targeting Work in Emerging Market Countries?," NBER Working Papers 10646, National Bureau of Economic Research, Inc.
  22. Corrinne Ho & Robert N. McCauley, 2003. "Living with flexible exchange rates: issues and recent experience in inflation targeting emerging market economies," BIS Working Papers 130, Bank for International Settlements.
  23. Ilan Goldfajn & Sergio R.C. Werlang, 2000. "The pass-through from depreciation to inflation : a panel study," Textos para discussão, Department of Economics PUC-Rio (Brazil) 423, Department of Economics PUC-Rio (Brazil).
  24. Eric Leeper, 2003. "An "Inflation Reports" Report," NBER Working Papers 10089, National Bureau of Economic Research, Inc.
  25. Javier Gómez & José Darío Uribe & Hernando Vargas, 2002. "The Implementation Of Inflation Targeting In Colombia," BORRADORES DE ECONOMIA 003603, BANCO DE LA REPÚBLICA.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:05/163. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.