Open AccessThe establishment of the inflation target and the corridor of fluctuations of the target: analysis of world trends and practice in Ukraine
Author(s) -
Vitaliy Shapran,
Ігор Геннадійович Брітченко
Publication year - 2021
Publication title -
vuzf review
Language(s) - English
Resource type - Journals
ISSN - 2534-9228
DOI - 10.38188/2534-9228.21.3.02
Subject(s) - inflation (cosmology) , inflation targeting , economics , monetary policy , value (mathematics) , monetary economics , central bank , macroeconomics , physics , statistics , mathematics , theoretical physics
The article presents an analysis of global trends in setting the inflation target and the acceptable corridor of inflation target fluctuations. Inflation targeting is an important attribute of the monetary regime of inflation targeting, its main quantitative parameter. The tendency of the inflation targeting regime in 70 countries all over the world are considered, of which 41 countries have official recognition by the International Monetary Fund (IMF) regarding the inflation targeting regime. It was found that most countries set the inflation target at 5% or below, and the level of the corridor of fluctuations in relative terms hovers around 20-50% of the target value. The latest trends related to changes in the monetary policy of the European Central Bank have been studied, recommendations for determining the acceptable corridor of fluctuations of the inflation target in small and open economies on the example of Ukraine are provided.