Language(s):
English
Media:
Article or paper, Website
Fax:
+ 55 61 21055001
Area of Focus:
Economic Development, Microcredit, Poverty and Hunger
Phone:
+ 55 61 2105 5000
Last updated:
April 19, 2008
Description:
This One Pager questions the adoption of explicit inflation targeting by countries such as Ghana and South Africa. The author argues that such a choice is particularly ill-advised now as supply-side factors, such as rising oil and food prices, are driving up inflation in many such developing countries. He maintains that, instead, policymakers should focus on stabilizing the real exchange rate and free fiscal policy to cushion domestic investment and necessary consumption.
