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A Critique On Inflation Targeting

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  • Marjan Petreski

    (University American College - Skopje)

Abstract

The objective of this paper is to offer some critical argumentation on the merits of inflation targeting. The literature on inflation targeting is dominated by the views that it has been a successful strategy in lowering or maintaining the achieved low inflation and in supporting the real economic activity. Yet, a thorough analysis of the mechanism through which it works might suggest that this performance might be a result of the relatively shock-free period in the 1990s and 2000s. Moreover, the role of the exchange rate is examined.

Suggested Citation

  • Marjan Petreski, 2009. "A Critique On Inflation Targeting," Journal Articles, Center For Economic Analyses, pages 11-24, December.
    • Handle: RePEc:cmk:journl:y:2009:p:11-24
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    Cited by:

    1. Marjan Petreski, 2010. "An Overhaul of a Doctrine: Has Inflation Targeting Opened a New Era in Developing-country Peggers?," FIW Working Paper series 057, FIW.
    2. Marjan Petreski, 2011. "A Markov Switch to Inflation Targeting in Emerging Market Peggers with a Focus on the Czech Republic, Poland and Hungary," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 57-75.

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