Emerging market economies face practical issues when implementing inflation targeting

Author: Andre Shachter
Publisher:
Publish Date: 2002-12-01
Features: Inflation targeting has become increasingly popular in emerging market countries, making it necessary for these countries to seek more technical assistance from the Fund to address the challenges they face when adopting this policy framework. This paper summarizes operational and institutional policy lessons learned from implementing inflation targeting, providing reference for emerging market countries. These lessons are based on the experience of industrial countries in implementing inflation targeting, as well as the relatively shorter experience of emerging market countries in this regard. As more countries adopt inflation targeting, the lessons summarized in this paper will continue to improve.