Research on Inflation Targeting Based on International Experience

Inflation targeting has been enacted since 1990s in which price stability is regarded as its chief target of monetary policy,its purpose is to realize and maintain a lower inflation rate.An analysis is made in the inflation targeting countries from the independence of central bank,inflation target designing,and transparency of implementing monetary policy by the central bank,the responsibility investigation system and the relationship between prediction of inflation and long-term inflation rate,etc.It can be seen that inflation targeting will help institutional reform of the central bank,for it has a high transparency,and the possibility of responsibility investigation is quite big,but it has a disadvantage of conditioning short-term flexibility.At present,owing to some binding conditions in China,there is no possibility for implementing inflation targeting in China.