The effects of inflation targeting strategy on the growing performance of developed and developing countries: Evaluation of pre and post stages of global financial crisis

Abstract

Inflation targeting strategy emerged in consequence of the searching’s of countries after they could not achieved the price stability until 1990s and as of this date it has been increasingly approved. It can be said that, this strategy is an operational regime so as to increase the performance of monetary policy and gained a placed in the economy policies of countries due to its good performance till today. The main aim of this strategy is first to reduce inflation at low levels and then take under the control at these levels. It is agreed that unless the target variations (or target range) occurred depending upon economic fluctuations are permanent, they do not create any negative effects on the success of approach. However, this strategy has been questioned caused by the process in crisis. This paper examines growth rates (GDP) in developed and developing countries that is implement of inflation targeting strategy show how a change in the period before and after the crisis (2005-2011). In addition, also inflation performance of those countries has been taken into account for he same period in this review. In this respect, growth and inflation performances of the countries that implement this strategy have been compared by means of table and graphical form