A Research On The Application Of Inflation Targeting In Asia

Inflation Targeting (IT) is an emerging monetary policy framework in recent 15 years. It has been implemented in a lot of countries of different types and in different regions. All Inflation Targeters has reached a satisfactory record. Since 1998, four Asian Countries, Koran, Indonesia, Thailand and Philippines had adopted IT formally one by one.Why they all turned to the IT regime after the 1997 Financial Crisis? What are the initial conditions before they adopted IT? What are the characteristics of IT regime in these four countries? How has the IT regime performed in these countries? Is it advisable for China to adopt IT now? My dissertation tries to answer the questions listed above.I conclude that (1)it's reasonable that the four Asian countries turned to IT regime because of their special economic structures and policy stances; (2) although the initial conditions in these countries are not so satisfying, the IT regime has turned out to be effective owing to the monetary authorities' wisdom;(3) although it's not advisable for China to adopt IT now, IT still remains a reasonable option for China when time is mature. But before turning to IT, China must enhanced the functions of its markets and build the initial conditions.