Download or read book Disagreement about Future Inflation: Understanding the Benefits of Inflation Targeting and Transparency written by Steve Brito and published by International Monetary Fund. This book was released on 2018-01-25 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the determinants of disagreement about future inflation in a large and diverse sample of countries, focusing on the role of monetary policy frameworks. We offer novel insights that allow us to reconcile mixed findings in the literature on the benefits of inflation targeting regimes and central bank transparency. The reduction in disagreement that follows the adoption of inflation targeting is entirely due to increased central bank transparency. Since the benefits of increased transparency are non-linear, the gains from inflation targeting adoption have accrued mainly to countries that started from a low level of transparency. These have tended to be developing countries.