Adopting Inflation Targeting: Practical Issues for Emerging Market Countries

This paper suggests that emerging market countries compared with industrial countries seem to prefer a more formal institutional framework in support of inflation targeting. Institutional frameworks for emerging market countries are more formal than those for industrial countries and tend to modify the central bank framework before adopting inflation targeting. The paper also highlights the trade-offs in formulating an inflation targeting framework and describes the approaches to these trade-offs used by inflation targeting countries.