Paper finds evidence in favour of ‘exchange-rate-anchored inflation targeting’

International Monetary Fund headquarters

Managing the exchange rate can help make inflation targeting a more viable proposition in 'less developed countries', according to a working paper published by the International Monetary Fund.

Marco Airaudo, Edward Buffie and Luis-Felipe Zanna say there is an "embarrassing contradiction" between theory and practice on the topic, in their paper Inflation targeting and exchange rate management in less developed countries.

The authors produce a two-sector model of a small open economy featuring

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account