New approach targets import inflation, revolutionizing monetary policy in Georgia.
The article discusses how inflation targeting may not effectively control import inflation, especially for countries heavily reliant on imports like Georgia. The authors suggest new inflation indicators like agflation, munflation, and imflation to better reflect price changes in essential goods and imports. They propose a complex inflation targeting approach that considers both traditional inflation and import-related inflation indicators, like imflation, to improve monetary policy effectiveness.