Contents -- I. BACKGROUND -- II. LINKAGES WITH PARTNER COUNTRIES -- III. ECONOMETRIC ANALYSIS USING A VAR -- IV. POLICY IMPLICATIONS AND CONCLUDING REMARKS -- Appendix: Description of data used in the VAR -- REFERENCES

This paper provides an overview of inflation targeting frameworks and macroeconomic performance under inflation targeting. Inflation targeting frameworks are generally quite similar across countries, and a broad consensus has developed in favor of ""flexible"" inflation targeting. The evidence...