Inflation Targeting: A Systematic Literature Review and Bibliometric Analysis

Abstract

The main aim of this research paper is to carry out the systematic Literature review related to Inflation Targeting, its determinants, and implications on the policymakers for Indian economy. Inflation targeting framework adopted by Indian economy is flexible and attained 9 Years of inflation targeting which started from the year 2016, and the main aim is to provide Price stability and economic growth. Through this analysis, it helped to understand the importance and determinants related to inflation targeting within the economy and implications on other variables related to policymakers. This paper has utilized the Systematic Literature review method to study the broad scope of works published on ‘Scopus indexed journals, Web of Science’ to examine the monetary framework related to inflation targeting and its effectiveness. Inflation targeting mainly resulted in low and stable inflation and increased transparency. However, long-run growth effects and employment aspects are to be analyzed further. This paper attempts to identify the gaps within the existing research related to the systematic literature review related to the cost of disinflation incurred within the scope of sacrifice ratio for Indian economy.