The establishment of the inflation target and the corridor of fluctuations of the target: analysis of world trends and practice in Ukraine

Keywords: inflation, inflation target, monetary policy, development markets, monetary transmission, prime rates, credit markets, monetary regime

Abstract

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.

Author Biographies

Vitaliy Shapran , National Bank of Ukraine

Professor, Ph.D. in Economics

Igor Britchenko, VUZF University

Dr. of Sciences, Professor Higher School of Insurance and Finance

References

IMF. World Economic Outlook, July 2021.

IMF. Annual Report on Exchange Arrangements and Exchange Restrictions 2019, 10/08/2020.

Shapran V.S. The Influencing the "virus" crisis on the monetary policy of Ukraine in 2020. Center of research on name of Razumkov. January 2021. Pages 112-115.

Shapran V.S., Shapran N.S. Risks of monetary stimulation of economic growth. Center of research on name of Razumkov. March 2019. Pages 126-136.

Shapran V.S., Associativity in foreign exchange regulation in Ukraine. Scientific digest of the Financial Research Institute 2018. Pages 89-91.

bank.gov.ua

tradingeconomics.com

centralbanknews.info


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Published
2021-09-29
How to Cite
Shapran , V., & Britchenko, I. (2021). The establishment of the inflation target and the corridor of fluctuations of the target: analysis of world trends and practice in Ukraine. VUZF Review, 6(3), 13-19. https://doi.org/10.38188/2534-9228.21.3.02
Section
Articles