Inflation Targeting: the Impact of it on Inflation Trend in Different Countries around the World

Subject Areas : Financial Knowledge of Securities Analysis

Ahmad Jafari Samimi ¹ ( نویسنده اصلی و مسئول مکاتبه )
Sara Hanjari ² ( ندارد )

Received: 2009-03-10 Accepted : 2009-04-04 Published : 2009-03-21

Keywords: Inflation targeting, Inflation Rate, All Countries around the&#x0D, &#x0D, Wor, Iran,

Abstract :

The purpose of this paper is to investigate the effect of inflation targetingon inflation rate in different countries around the world. To do so, thepublished data by the International Monetary Fund in 2007, have beenused. The research findings as a result of testing the mean comparison,(one for all countries, another for each countries individually during1975-2007), indicate that this policy reduce the inflation rate in selectedcountries. Therefore using this policy in other countries which have theprerequisites such as central bank independence is suggested. Also inIran improving central bank independence to adopt inflation targeting forlong-run, emphasized.