Duskobilov Umidjon Sharofiddinovich
PhD, Doctoral student of Tashkent State University of Economics,
Tashkent, Uzbekistan. E-mail: uduskobilov@gmail.com
ORCID: 0000-0002-6382-8150
Abstract. The article deals with scientific-theoretical basis of transition to inflation targeting. The theoretical and methodological aspects of the article base on approaches and views of economists on the area and expressed the author’s attitude towards them. In particular, it highlights effective interest rate policy of economic researchers on the move to the inflation targeting. The article sheds light on operational mechanism and intermediate and strategic goals of the monetary policy of Central Banks. It was proposed that the monetary regulator should establish the provision of domestic price stability in the medium term as a strategic goal within the framework of inflation targeting and, on the basis of this, create institutional conditions for adapting the directions and principles of monetary policy to the inflation targeting regime. Particularly, the impact of policy interest rate change of the central bank on the interbank money market rates and consequently on deposits and loans rate was analyzed. Based on international experience, the types of inflation targeting were studied and their specific aspects were considered. In particular, tough and soft inflation targeting regimes are studied. It is argued that the classical view of tough inflation targeting has some negative features as well as positive aspects. According to tough inflation targeting regime, it leads to changes in interest rates, nominal and real exchange rates of local currency. It also negatively affects stability of economic growth and well-being of population. In addition, it is noted that conducting a soft inflation targeting policy as a priority mode of monetary policy is a relatively effective method. It is stated that compatibility between acceptable level of inflation and total emission of local currency is especially important in the conditions of short-term unexpected fluctuations in the world trade, financial system and global financial waves. Different aspects of flexible and integrated inflation targeting regimes are analyzed. Proposals have been made to create macroeconomic conditions for transition to inflation targeting regime in our country.
Keywords. monetary policy, inflation targeting, interest rate, overnight deposits, operational mechanism, intermediate goal, strategic goal, flexible and integrational inflation targeting.