Central Bank Independence and Inflation Target Regime

The objective of this paper is to evaluate the efficiency of inflation target regime in developing countries and to discuss the importance of independent central banks. As inflation control is the main central banks objective, agreed by targets established by the government, and as monetary policy has no instantaneous impact over inflation, the monetary authority must try to anticipate inflationary pressure. In this way, we want to understand how monetary policys decisions are made under inflation target regime.

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