Impact of Inflation Targeting Framework in the Conduct of Monetary Policy in the Developed and Developing Country

This literature review explores the effectiveness of inflation targeting as a monetary policy strategy in both developed and developing countries. It assesses the conditions necessary for the successful implementation of inflation targeting, the relationship between inflation targeting and monetary policy rules, and the impact of exposure to global trends on inflation targeting strategies. The researcher developed a methodology that focuses on the benefits and limitations of inflation targeting, the link between monetary policy rules and inflation targeting, and how exposure to global trends affects inflation targeting tactics. The articles reviewed cover a range of topics, including the prerequisites for adopting inflation targeting, the benefits of price-level targeting, the causes of low inflation, and the symbiotic relationship between inflation targeting and monetary policy rules