Inflation Targeting in Zambia
An Evanuation of the Feasibility of Implementing Inflation targeting in Zambia
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Inflation targeting has been rather a contravesial topic in economies like South Africa where it seemingly has proved to be a success in managing macroeconomic variables. Notwithstanding the various challenges that have come with it, I consider formal inflation targeting to be by far a more transparent way of conducting monetary policy. It is broad based in the sense it has important requisites before it can work successfully and therefore the notion that it is too focused on "merely an inflation figure" may not be too valid. It is somewhat predictable and I think that modern day markets play ...
Inflation targeting has been rather a contravesial topic in economies like South Africa where it seemingly has proved to be a success in managing macroeconomic variables. Notwithstanding the various challenges that have come with it, I consider formal inflation targeting to be by far a more transparent way of conducting monetary policy. It is broad based in the sense it has important requisites before it can work successfully and therefore the notion that it is too focused on "merely an inflation figure" may not be too valid. It is somewhat predictable and I think that modern day markets play along in an appropriate way. There is however deep scope for new thoughts on the subjest matter especially in the context of the recent global meltdown.
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