Home  Journals  Finance and Credit  10(778) - 2018 October

Paradoxes of inflation targeting and the determinants of price performance in Russia and the world

Vol. 24, Iss. 10, OCTOBER 2018

Article PDF Version

Received: 27 July 2018

Received in revised form: 14 August 2018

Accepted: 28 August 2018

Available online: 31 October 2018

Subject Heading: MONETARY ACCOMMODATION

JEL Classification: E51, E52, E58

Pages: 2163–2174

https://doi.org/10.24891/fc.24.10.2163

Subject This article deals with the issues of inflation targeting, which is the main form of monetary policy in the modern economy and is widely used in industrial and emerging economies.
Objectives The article aims to conduct a comprehensive study of the peculiarities of inflation targeting under the functioning of the modern mechanism of money supply formation, as well as develop a methodological framework to increase the effectiveness of anti-inflationary monetary policy in the Russian economy.
Methods The study involves the methods of scientific abstraction, induction, deduction, synthesis, and comparative analysis.
Results The article reveals and describes certain paradoxes of the conceptual framework of inflation targeting.
Conclusions Inflation targeting as a form of monetary policy is the impact, including legal methods, on the rational expectations of economic agents and the use of the central bank's key interest rate as a tool to influence the aggregate demand and price dynamics.

Keywords: inflation, targeting, monetary policy, interest rate, deflation, quantitative easing, inflation expectations

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