01791cas a2200241 a 4500 AALejournalIMF009309 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866971 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Modalities of Moving to Inflation Targeting in Armenia and Georgia. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (36 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 paper reviews the current monetary and exchange rate policy frameworks in Armenia and Georgia, and the challenges associated with the choice of a credible nominal anchor in the context of large nominal and real shocks. The paper makes a case for a gradual transition to full-fledged inflation targeting (FFIT) in both countries in the medium term. The implications of this option are examined from various angles. In particular, the monetary transmission mechanisms and compliance with major institutional prerequisites for successful FFIT adoption are analyzed. Based on this analysis, the paper identifies a series of short- and medium-term recommendations, drawing on the experience of emerging market countries that successfully moved to FFIT. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/133 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/133/001.2007.issue-133-en.xml IMF e-Library