The article examines how inflation targeting in developing countries like Brazil, Chile, and Mexico can impact economic growth. It shows that under inflation targeting, monetary policy tends to be more restrictive during economic downturns and less accommodating during expansions. This can lead to a decrease in overall demand, negatively affecting long-term output and employment. The study found that Brazil and Chile have procyclical monetary policies, while Mexico's is countercyclical. It also highlights that monetary policy reacts differently to economic changes in these countries. The main takeaway is that central banks should consider the impact of their policies on output and employment more carefully.