TY  - JOUR
AU  - Fraga, Arminio
AU  - Goldfajn, Ilan
AU  - Minella, Andre
TI  - Inflation Targeting in Emerging Market Economies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10019
PY  - 2003
Y2  - October 2003
DO  - 10.3386/w10019
UR  - http://www.nber.org/papers/w10019
L1  - http://www.nber.org/papers/w10019.pdf
N1  - Author contact info:
Arminio Fraga
Gavea Investimentos
Av Ataulfo de Paiva, 1100
Rio de Janeiro RJ
22440-035 Brazil
Tel: 5521-3526-9120
E-Mail: afraga@gaveainvest.com.br

Ilan Goldfajn
Central Bank of Brazil 
E-Mail: no email available

Andre Minella
Research Dept.
Central Bank of Brazil-Depep
SBS-Quadra 3-Bloco B-Edificio-Sede-9.andar
70074-900 Brasilia-DF BRAZIL
E-Mail: andre.minella@bcb.gov.br
M1  - published as Arminio Fraga, Ilan Goldfajn, André Minella. "Inflation Targeting in Emerging Market Economies," in Mark Gertler and Kenneth Rogoff, editors, "NBER Macroeconomics Annual 2003, Volume 18" The MIT Press (2004)

AB  - This paper assesses inflation targeting in emerging market economies (EMEs), and develops applied prescriptions for the conduct of monetary policy and inflation-targeting design in EMEs. We verify that EMEs have faced more acute trade-offs higher output and inflation volatility   and worse performance than developed economies. These results stem from more pronounced external shocks, lower credibility, and lower level of development of institutions in these countries. In order to improve their performance, we recommend high levels of transparency and communication with the public and the development of more stable institutions. At an operational level, we propose a procedure that a central bank under inflation targeting can apply and communicate when facing strong supply shocks, and suggest a monitoring structure for an inflation-targeting regime under an IMF program.
ER  -