Inflation targeting boosts economic performance and resilience to shocks worldwide.
The article discusses how countries use inflation targeting to manage their economies. Most countries use a flexible approach to inflation targeting. Even though countries often miss their inflation targets, overall, inflation targeting has led to better economic performance compared to other methods. Countries that use inflation targeting also seem to handle economic shocks better. Moving forward, it's important to adapt inflation targeting for developing countries and to consider financial stability in the framework.