Inflation Targeting Lite

Inflation targeting lite (ITL) countries float their exchange rate and announce an inflation target, but are not able to maintain the inflation target as the foremost policy objective. This paper identifies 19 emerging market countries as practitioners of ITL. They seem to focus mainly on bringing inflation into the single digits and maintaining financial stability. ITL can be viewed as a transitional regime aimed at buying time for the implementation of the structural reforms needed for a single credible nominal anchor. The important policy challenges for an ITL central bank include whether or not to precommit to a single anchor.

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Year of publication:	2003-01-01
Authors:	Stone, Mark R.
Institutions:	International Monetary Fund (IMF)
Subject:	Inflation targeting \| Price stabilization \| inflation \| monetary policy \| central bank \| inflation target \| foreign exchange \| price stability \| financial stability \| percent inflation \| monetary regime \| money growth \| monetary fund \| monetary policy framework \| monetary framework \| inflation objective \| national bank \| open market operations \| low inflation \| inflation rate \| monetary policy objectives \| monetary policy regime \| high inflation \| monetary program \| government securities \| country monetary regimes \| monetary regimes \| reserve requirements \| monetary instrument \| monetary base \| annual inflation \| rates of inflation \| transitional monetary regime \| monetary stability \| foreign currency \| monetary aggregates \| inflation forecasts \| rate of inflation \| monetary instruments \| monetary regime choices \| inflation observations \| treasury operations \| open market operation \| monetary targets \| interest rates on government securities \| monetary conditions \| inflation targeting framework \| monetary objective \| monetary union \| moderate inflation \| high rates of inflation \| monetary policies \| monetary target \| real interest rate \| money demand \| inflation performance \| actual rate of inflation \| real interest rates \| monetary policy frameworks \| liquidity management \| independent monetary policy \| domestic monetary conditions \| money markets \| macroeconomic performance

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 03/12 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005769176