The study explores the effects of temporary inflation targeting on employment, investment, and the current account. It considers two scenarios: when consumption and leisure are substitutes, a temporary rise in inflation can increase the value of assets, leading to long-lasting positive effects on employment and output. When consumption and leisure are complements, a temporary decrease in inflation may have short-term costs but long-term benefits for employment and output. These findings suggest that the impact of inflation on the economy depends on the relationship between consumption and leisure.