The Transition to Inflation Targeting in an Emerging Economy : Selected Issues

Monetary policy in Argentina is in transition to an inflation targeting regime with a floating exchange rate. As reviewed in this note, several measures have been taken to normalise the functioning of exchange rate and money markets. The next steps will present a number of challenges, many of them common to monetary policy implementation in EMEs. We look at the relationship between objectives and instruments in the monetary policy strategy, the role of the exchange rate, the initial conditions for adoption of inflation targeting, and the types of shock that EMEs are exposed to and how these may influence the strategy adopted. Full Publication: 'http://ssrn.com/abstract=2870167' Inflation Mechanisms, Expectations and Monetary Policy