TARGETING INFLATION AND ITS APPLICABILITY TO SYRIAN ECONOMY

Year 2020, Volume: 4 Issue: 4, 186 - 214, 23.12.2020

Sabri Hasan

Abstract

Inflation targeting consider as an instrument of financial policy instrument, that target to handling Inflation through announcement accurate, explicit, and determined target for attainment low price level stability.
Therefore, Inflation targeting method requirements are:
1- Independence of the Central Bank.
2- Having a Sole Target.
3- Effectiveness of Monetary Policy.
Inflation targeting method depend basically on Independence of the Central Bank, because this independency is guarantee for government. There are deferent degrees for independency, start from monetary policy instruments to their targets.
Many development countries concentrate their monetary policies on Inflation targeting method as instrument to handling Inflation through announcement accurate, explicit, and determined inflation target to decline prices and they succeed, but the basic channel for this success is the dominance on savers and investors expectations, were they trust to Central Bank policy. If the Central Bank can convincing public with its credibility and his commitment to handling inflation it can inquiry it easily.
In this research, we are studding the definition of Inflation targeting, and its requirements, and conditions, and The Situation of Monetary Policy in Syria through:
1- Absence of Independence Monetary Institutions and Policy
2- Freeze of Basic Monetary System Rules
3- Fixed of Interest Rates.
4- Absence and Ineffective Monetary Policy Instruments.

Keywords

Inflation targeting, monetary policy, financial policy, Central Bank, , independency

References

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