Author(s): Xuemei Hou
Inflation targeting has emerged as a dominant framework for monetary policy in many countries, aimed at maintaining price stability and fostering sustainable economic growth. This article explores the evolution, implementation, and outcomes of inflation targeting across diverse economies, highlighting its benefits, challenges, and contextual variations. By comparing advanced and emerging economies, we analyze the effectiveness of inflation targeting in achieving macroeconomic objectives and discuss the role of central banks, policy tools, and external factors. This comparative analysis provides insights into how inflation targeting has shaped monetary policy in a rapidly changing global economic landscape.