The Feasibility of Implementing Inflation Targeting: Reality and Challenges

Abstract: Inflation is a serious issue affecting the entire economic activity. Many monetary policy makers believe that price stability should be the primary goal of monetary policy. This study aims to highlight inflation targeting as a new strategy for managing monetary policy. The number of countries adopting this policy has significantly increased, necessitating an examination of the underlying reasons and learning from the experiences of countries that have implemented it. The study reviews the concepts, reasons, and conditions for implementing this policy, and through examining various studies conducted in different countries, it finds that most developing countries lack the necessary conditions to implement inflation targeting and need to create an appropriate environment for its application to address inflation issues. Keywords: Inflation, entire economic activity, monetary policy makers, monetary policy. Title: The Feasibility of Implementing Inflation Targeting: Reality and Challenges Author: Dr. Mohamed Saad Mohamed Abu Karsh International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 11, Issue 4, October 2024 - December 2024 Page No: 44-51 Paper Publications Website: www.paperpublications.org Published Date: 12-December-2024 DOI: https://doi.org/10.5281/zenodo.14408436 Paper Download Link (Source) https://www.paperpublications.org/upload/book/The%20Feasibility%20of%20Implementing-12122024-1.pdf