Monetary policy in emerging countries like Georgia aims to control inflation by setting a target rate and adjusting interest rates accordingly. In the past, central banks focused on exchange rates and unemployment, leading to economic challenges like stagflation. Inflation targeting has since become a popular strategy, with the National Bank of Georgia adopting it in 2009. By setting a clear inflation target of 3%, the bank aims to maintain price stability and communicate its goals effectively to the public. This approach helps guide monetary policy decisions and promote economic stability in the country.