01665cas a2200253 a 4500 AALejournalIMF005750 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451872330 1018-5941 BD-DhAAL BD-DhAAL Freedman, Charles. Why Inflation Targeting? / Charles Freedman, Douglas Laxton. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This is the second chapter of a forthcoming monograph entitled "On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say." We begin by discussing the costs of inflation, including their role in generating boom-bust cycles. Following a general discussion of the need for a nominal anchor, we describe a specific type of monetary anchor, the inflation-targeting regime, and its two key intellectual roots-the absence of long-run trade-offs and the time-inconsistency problem. We conclude by providing a brief introduction to the way in which inflation targeting works. Mode of access: Internet Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2009/086 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/086/001.2009.issue-086-en.xml IMF e-Library