Inflation targeting is a flexible policy that helps central banks keep prices stable. It's been adopted by many countries recently. Agenor explains how it works, focusing on developing countries with low inflation and good financial markets. He talks about the requirements for inflation targeting and how it's different from other monetary policies. Agenor also looks at how well inflation targeting has worked in six developing countries. His findings show that inflation targeting can help central banks maintain stable prices and improve monetary policy in developing economies. It's important to have good data and forecasting skills, but it's also crucial to have the right institutional framework in place.