•  
  •  
 

Bullion

Keywords

Inflation Targeting, Inflation, Monetary Policy, Inflation forecasting

Abstract

Inflation Targeting as a framework for monetary policy implementation simply describes a policy framework in which central banks accept and announce the realization of certain forecast targets of inflation, over a given time period, as the measure policy anchor and are accountable for deviations from actual inflation from the said target. The primary goal of the paper was to expose the prospects and challenges facing the implementation of inflation targeting in Nigeria. To put the subject in proper perspective, common terminologies often used in discussing lT were defined. The preconditions for effective lT were also highlighted. The paper has argued that most of the preconditions met in other jurisdictions before transition to lT are currently present in Nigeria. Notwithstanding some of the challenges that still lie ahead, it is concluded that Nigeria should begin to transit to inflation targeting framework for conducting monetary policy. The study concluded that Nigeria should begin to transit to inflation targeting framework for conducting monetary policy.

Author Bio

Mbutor O. Mbutor is an economist in the Research and Statistics Department of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

3

Volume

32

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.