A growing number of countries are anchoring their monetary policy through explicit inflation targeting. This policy has already scored remarkable successes in several countries, establishing central bank credibility, and reining in inflation where it had long been stubbornly high. But...

This paper argues that the IMF's traditional monetary conditionality-a ceiling on net domestic assets of the central bank and a floor on its net international reserves-should be adapted in IMF-supported adjustment programs with countries which have a framework of explicit inflation targets for...

Intro -- Contents -- Contributors -- Preface -- 1 Introduction and Overview -- 2 Maintaining Low Inflation: Rationale and Reality -- 3 Strategic Choices in Inflation Targeting: The New Zealand Experience -- 4 Inflation Forecast Targeting: The Swedish Experience -- 5 The Canadian Monetary...