Home  Journals  Finance and Credit  18(738) - 2017 May

What is the impact of inflation targeting on economic development?

Vol. 23, Iss. 18, MAY 2017

Article PDF Version

Received: 20 February 2017

Received in revised form: 6 March 2017

Accepted: 20 March 2017

Available online: 15 May 2017

Subject Heading: Monetary regulation

JEL Classification: С23, E52, E58, O42

Pages: 1063-1071

https://doi.org/10.24891/fc.23.18.1063

Subject The article addresses inflation targeting. During the transition to a floating exchange rate and inflation targeting regime in Russia, this subject is of particular importance.
Objectives The aims are to analyze empirical studies of the efficiency of transition to inflation targeting regime and various economic aspects associated with the process, to verify the specifics of the transition in developed and developing countries.
Methods The study employs methods of synthesis and retrospective analysis.
Results The paper reveals specific features of transition to inflation targeting in developed and developing countries, analyzes results of empirical studies of foreign authors on evaluating the efficiency of inflation targeting policy.
Conclusions The process of transition to inflation targeting in developing countries differs from that in developed countries. Significant specificity of emerging economies requires a prudential approach (taking into account macroeconomic and geopolitical conditions) to preparation for the transition. It is also necessary to combine the regime with other economic instruments and measures.

Keywords: macroeconomics, monetary policy, inflation, exchange rate, inflation targeting

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