On the measurement of imflation and complex inflation targeting
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Date
2019
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The paper analyzes the regime of inflation targeting which, unfortunately, has a number of deficiencies. One of them is that inflation targeting is powerless toward imported inflation. This problem is especially important in import dependent countries. The paper suggests the notion of an imflation index which reflects the dynamics of imported product prices in the domestic market where an important role is devoted to the national currency exchange rate. The paper suggests a complex inflation targeting when monetary policy indicators are both inflation and imflation.
Description
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Keywords
inflation; inflation targeting; exchange rate; complex inflation targeting; imflation
Citation
The 4th International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2019, pp. 326-329