Does Inflation Targeting Lower Inflation and Stimulate Growth in Emerging Economics

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Author	Abdelkader Aguir
ISSN	2307-2466
On Pages	342-350
Volume No.	3
Issue No.	7
Issue Date	December 01, 2020
Publishing Date	December 01, 2020
Keywords	Inflation Targeting; Growth; Emerging economies

Abstract

The policy of inflation targeting is a monetary regime that is inflation. His practice was marked by a large, observed at the beginning of the 90s and 2000, stability a debate emerges on efficiency and economic performance of the scheme. Many studies have focused on this question has no authority to reach a final consensus. The objective of this paper is to contribute to this debate by clarifying the origin of this monetary regime and offering, thereafter our own gate quantitative analysis. We use the analysis of two macroeconomic aggregates: inflation and economic growth under different samples. This paper analyzes the relevance of the inflation targeting (IT) policy in achieving its primary goal of medium term price stability in emerging countries. It finds that this monetary policy regime has been associated with a general reduction in inflation and spur growth .This study seeks to improve upon these results by identifying the impact of timing on the policy decision as well as its impact as related to specific regions of the world.

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