A comparative review of the inflation-targeting framework post the crisis of 2008

Abstract

The global financial crisis has shaken not only the foundations of the financial system but also elements of macroeconomic stability, particularly monetary policy as it relates to the central bank institution and its fundamental operations. This paper is centred on examining the aspects of the inflation-targeting framework both theoretically and practically, as the fulcrum around which modern central banking functions, in the context of the crisis and the economic conditions thereafter. This discussion is based on the idea that there exist spaces for broadening and extending the mandate of the central bank beyond inflation targeting and that crisis conditions have gone to show that.