Emerging Markets Face Economic Challenges Due to Inflation Targeting Strategy.
The article discusses how inflation targeting in emerging market economies can be improved. It suggests that these economies face more challenges compared to developed countries due to external shocks and weaker institutions. To enhance performance, the article recommends more transparency, better communication with the public, and stable institutions. Additionally, it proposes specific actions for central banks to take during supply shocks and outlines a monitoring structure for inflation-targeting regimes under IMF programs.