Back Matter
  • 1 0000000404811396 Monetary Fund


Inflation distorts prices, erodes savings, discourages investment, stimulates capital flight, inhibits growth, and makes economic planning a nightmare. During the past decade, several advanced economies have taken a new approach to the age-old problem of controlling inflation through monetary policy known as "inflation targeting." This pamphlet explains the requirements of putting the new policy in place, the experience of the countries that have tried it, and whether it has applicability to developing countries.

The Economic Issues Series

Guy Debelle is Deputy Head, Economic Analysis, at the Reserve Bank of Australia. He wrote Working Paper 97/35 when he was an Economist in the IMF’s Asia and Pacific Department. He graduated from the University of Adelaide and holds a Ph.D. from the Massachusetts Institute of Technology.

Paul Masson is Senior Advisor in the IMF’s Research Department. He received his Ph.D. from the London School of Economics. Before joining the IMF, he worked at the Bank of Canada and the Organization for Economic Cooperation and Development.

Miguel Savastano is a Senior Economist in the IMF’s Research Department and received his Ph.D. from the University of California, Los Angeles.

Sunil Sharma, a Senior Economist in the Research Department of the IMF, holds a Ph.D. from Cornell University. Prior to joining the IMF, he was a member of the economics faculty at the University of California, Los Angeles.