Importance The article discusses the use of inflation targeting during neo-industrial modernization. Objectives The research pursues providing the rationale for the need and applicability of the above regime. Methods The methodological framework comprises general scientific methods of cognition, i.e. dialectical, a combination of historical and logic unity, structural and functional analyses, conventional techniques for economic analysis and synthesis, and specific methods of research. Results I reviewed approaches to forming the neo-industrial model for Russia's economic development, and determined their salience. The article substantiates the role of the inflation targeting regime during the neo-industrial modernization and conditions for its implementation, identifying its strengths and weaknesses. The article presents an inflation targeting algorithm and describes the application practice. I found what factors prevented the Central Bank of Russia from reaching its goals as part of inflation targeting during the neo-industrial modernization. Conclusions and Relevance During the neo-industrial modernization, inflation targeting would be reasonable in the favorable macroeconomic environment, floating rate of the national currency, sustainable financial system, public confidence in the monetary policy of the Central Bank and its independent status in the implementation of the policy. As the Central Bank of Russia intends to embark on inflation targeting during the floating Ruble exchange rate, it will improve the investment climate by steering inflationary expectations of economic agents. The findings may prove useful to develop financial and lending regulation programs.
Keywords: inflation targeting, monetary policy, Central Bank, economic growth, neo-industrial modernization
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