Brazil - Inflation Targeting

Brazil - Inflation Targeting - Brazil2003inflationtargeting...

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Brazil 2003 inflation targeting Archana Pillai Strategy) IMT Hyderabad
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Learning objectives Mechanics of Inflation Targeting Challenges of inflation targeting in EMEs Inflation targeting vs Exchange rate  management in EMEs Debt dynamics and link with inflation targeting  Evaluating success of monetary policy Role and power of Central Banks
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Monetary policy concepts Traditionally – money supply and interest rate  tools Then the Exchange rate mechanism – from fixed  to floating regimes Pegs Monetary aggregates – Money supply measures
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Inflation targeting Explicit  institutional  commitment  to  meet  a  specified numerical inflation rate target within a  specified time. Monetary  policy  strategy  was  transparent  through communication with the public and the  markets  Countries  publicly  announced  their  targets  regularly Countries  had  institutional  arrangements  to  ensure Central Banks reached their targets and  were accountable
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Inflation targeting This  required  operational  independence  to  central banks They were required to develop models of inflation  forecasts Helped to project inflation figures and thus take  measures to control the future inflation Countries  experienced  low  and  stable  inflation  rates  Role of central banks were now more consistent  with the principles of a democratic society
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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Brazil - Inflation Targeting - Brazil2003inflationtargeting...

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