Inflation targeting in developing countries: Perspectives for Russia

Abstract

This study analyzes theoretical and methodological approaches to inflation targeting (IT) as a monetary policy regime. Important prerequisites, advantages and disadvantages of IT are discussed. The paper provides a comparative analysis of recent experience of IT in developing countries, describes the main challenges faced by them during the transition process to full-pledged inflation targeting. Author applies the results to Russian monetary system and discusses country's perspectives to adopt inflation targeting.