Inflation Targeting Countries’ Experience

Inflation targeting is historically the youngest strategy in the practice of monetary policy. Successfully pioneered by New Zealand, inflation-targeting schemes are now well established in several central banks, including the Czech National Bank (CNB).The experiences of other inflation-targeting central banks may offer lessons for the CNB. The article considers the experiences of the Reserve Bank of New Zealand and the Bank of England, and, to a lesser extent, the Bank of Canada and the Reserve Bank of Australia. In surveying these central banks? approaches to inflation targeting, Marek focuses on the confrontation of institutional arrangements, the practices of inflation targeting, realized monetary policy, and the challenge central banks faced in implementing inflation-targeting regimes. The banks? experiences are analyzed on a case-by-case basis, toward isolating the best modes of the inflation-targeting framework.