[ Degré de Pertinence de la politique de ciblage d'Inflation: Aspect pratique de l'expérience des banques centrales des pays industrialisés et adaptabilité pour quelques pays en voie de développement et en transition ]
Volume 2, Issue 1, January 2013, Pages 21–33
Mohsen Brahmi1 and Sonia Zouary2
1 Faculty of Economics and Management, University of Sfax, Campus Zarruk Gafsa IAE, Tunisia
2 Department of Economics, Higher Institute of Business Administration, University of Sfax, Tunisia
Original language: French
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Since the nineties years until nowadays, many industrialized countries adopted the inflation targeting strategy, following per other transition countries thus as other developing countries. In this framework, the monetary authorities are attached to announce an explicit target range of inflation rate foreseen on one or several periods. The inflation targeting requires the strengthening of communication between the monetary authorities and the public what enhance accountability and the discipline of the Central Bank towards its commitment to respect the realization of the objectives announced of its monetary policy in terms of inflation. The monetary authorities must be transparent concerning their monetary policy and will be judged, or even punished on all deviation from the target announced. The station results in a loss of credibility expressed by the economy actors.
Through this paper, firstly, we discuss the theoretical background of this approach to inflation targeting as a new monetary policy rule. To do this, we have tried to practice this new strategy of inflation targeting while presenting its main interests, preconditions, its advantages and unwinding mechanisms. In a second time, we were moving to concrete examples through the main experiences of Industrialized Countries Central Banks, which are in fact the first precursors to incorporate explicit inflation targets in the formulation of monetary policies following this new strategy target, followed by other Transition countries (Czech Republic, Romania ... etc..) and some in developing countries such as Brazil and the Philippines, ... etc. which are actually encouraged by good results achieved by the major Western countries.
Author Keywords: Inflation Targeting policy, industrialized countries, transition countries, developing countries.
Volume 2, Issue 1, January 2013, Pages 21–33
Mohsen Brahmi1 and Sonia Zouary2
1 Faculty of Economics and Management, University of Sfax, Campus Zarruk Gafsa IAE, Tunisia
2 Department of Economics, Higher Institute of Business Administration, University of Sfax, Tunisia
Original language: French
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Since the nineties years until nowadays, many industrialized countries adopted the inflation targeting strategy, following per other transition countries thus as other developing countries. In this framework, the monetary authorities are attached to announce an explicit target range of inflation rate foreseen on one or several periods. The inflation targeting requires the strengthening of communication between the monetary authorities and the public what enhance accountability and the discipline of the Central Bank towards its commitment to respect the realization of the objectives announced of its monetary policy in terms of inflation. The monetary authorities must be transparent concerning their monetary policy and will be judged, or even punished on all deviation from the target announced. The station results in a loss of credibility expressed by the economy actors.
Through this paper, firstly, we discuss the theoretical background of this approach to inflation targeting as a new monetary policy rule. To do this, we have tried to practice this new strategy of inflation targeting while presenting its main interests, preconditions, its advantages and unwinding mechanisms. In a second time, we were moving to concrete examples through the main experiences of Industrialized Countries Central Banks, which are in fact the first precursors to incorporate explicit inflation targets in the formulation of monetary policies following this new strategy target, followed by other Transition countries (Czech Republic, Romania ... etc..) and some in developing countries such as Brazil and the Philippines, ... etc. which are actually encouraged by good results achieved by the major Western countries.
Author Keywords: Inflation Targeting policy, industrialized countries, transition countries, developing countries.
How to Cite this Article
Mohsen Brahmi and Sonia Zouary, “Degree of relevance of the Inflation Targeting policy: Practical aspect of the central banks experience of industrialized countries and adaptability for some developing and transition countries,” International Journal of Innovation and Applied Studies, vol. 2, no. 1, pp. 21–33, January 2013.
