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Inflation Targeting in the World Economy, PDF eBook

Inflation Targeting in the World Economy PDF

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This study reviews the literature on the contribution of low inflation to economic growth and the subsequent widespread adoption of inflation targeting as a monetary policy framework.

Edwin Truman addresses the challenges and risks associated with such a framework.

Building on these foundations, the study focuses on two major international economic policy issues: (1) the implications of differing national regimes of inflation targeting for international economic policy cooperation; and (2) the adoption of inflation targeting by emerging-market economies which often lack stable monetary policy environments and credible policy authorities-a situation which, among other things, can complicate the use of the inflation targeting framework as the basis for IMF-supported stabilization programs.

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