There has been a consensus on the importance of price stability as the overriding long term objective for n-ıonetary policy in literature. Within this context, many industrial and deveIOping economies have recently adopted explicit inflation targeting as their monetary policy regime. Several issues must be taken into consideration if the inflation targeting regime is to be efficient. In particular, they include selecting a relevant price index; specification of the numerical value and horizon

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... r the inflation target; definition of the range of the target variable; providing the central bank with instrument independency; ensuring the transparency and accountability of monetary policy; developing a reliable economic model of inflation.