The adopting inflation targeting in the monetary policy of emerging countries: challenges and issues

In this paper, our main objective is to verify the ability of inflation targeting to achieve better results concerning inflation, production and interest rate, with a new sample related to some emerging countries. Therefore, we have studied the opportunities stemming from the adoption of inflation targeting during a time period ranging from 1975 to 2005 dealing with a sample of Emerging Asians Countries as compared to Emerging North African ones. Our contribution consists in debating the divergences existing between the two set of sample countries in their control of inflation rate before and after the adoption policy and their effects essentially, on maintaining the inflation rate stability. We have administrated some stationarity, causality and stability tests in order to check the importance of these structural changes in facing the instability of inflation rate. The results show that the two groups of countries have registered a significant progress, especially, those pursuing inflation targeting policy. However, it remains still difficult to attribute the remarkable changes in inflation dynamics to the explicit target factors