INFLATION TARGETING – OFFICIAL NBS MONETARY STRATEGY

Abstract

This paper presents the conditions and objectives of the introduction of inflation targeting as a new monetary policy strategy. Many central banks in the world have adopted this strategy and achieved positive results in terms of curbing inflationary tendencies. So the National Bank of Serbia has adopted this strategy, although not fulfilled all the preconditions for its introduction. It shows the mix of monetary policy instruments used in the NBS management strategy of inflation targeting, as well as the results achieved since the beginning of its application.