Inflation Targeting (IT) was first adopted in New Zealand in 1990 with a primary goal of price stability. They were going through years of high inflation and slow growth. Initially, they set a target of between 0 to 2 percent. In 1991, the Inflation rate was down to 2.60% from 6.10%.Although there is a cost of disinflation and the Real GDP fell, it recovered. As of August 2019, there are about 71 Central Banks which has adopted an IT Monetary Policy. It can be seen that the authorities are most likely to adopt this policy when their inflation rate is high –to bring it down. Argentina adopted IT in 2016 while the inflation rate was 35.5%, Uganda in 2011 with an inflation rate between 16%-17%

Recent News

Prof. Vidya Mahambare speaks Live on Bloomberg Markets - Asia
Read More
The difference education makes to what the salaried earn in India - Prof. Vidya Mahambare and Sowmya Dhanaraj
Read More
Contact Us
  • Great Lakes Institute of Management,
    Prince infocity II,
    Ist floor,
    283/3, rajiv gandhi salai (OMR),
    Kandanchavadi,
    Chennai - 600096
  • +91-44-6699-9300
  • +91-44-6699-9301

Associations

  • Chicago Booth
  • Hkust
  • Babson
  • Universite De Bordeaux
  • IIT Stuart School of Business
  • Bauer
Back to Top