The choice of inflation targeting regimes for inclusive growth: Lessons from southern countries

Author : Behrooz Gharleghi

Abstract : This study tries to shed light on whether the inflation targeting framework behaves as a growth enhancing strategy in some selected southern countries. The study also investigates the best choice of inflation targeting regimes. Using panel data regression model for a growth regression, we found that this monetary policy framework has a relatively significant positive effect on economic growth. This means that even in terms of economic growth, using inflation as a nominal anchor is a better framework to conduct monetary policy than using exchange rate or money aggregate. The results also revealed that among different types of inflation targeting frameworks,full-fledged can be the best choice for the selected southern countries.

Keywords : Inflation Targeting, Economic Growth, Monetary Policy, Panel Data Analysis

Conference Name : International Conference on Monetary Policy and Central Bank Operations (ICMPCBO-26)

Conference Place : Zagreb, Croatia

Conference Date : 23rd Jul 2026