The odyssey of inflation targeting: To new challenges of monetary policy

Abstract

What has happened to inflation targeting after a quarter of the century? The popular regime of monetary policy has experienced considerable changes. Central banks of developed economies received the double mandate; there were elements of monetary targeting, there was departure from an interest rate as the main instrument of monetary policy; innovations in communication policy are devoted to the disclosure of the forecast of future interest rate and alternative inflation estimates. There are deviations of the actual inflation from an inflation target, de facto moving from inflation targeting to hybrid regimes, and manipulation of inflation target in developing economies.