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Inflation targeting regime is increasingly popular around the world and more than 20 countries adopted this regime in the 1990s and 2000s. A characteristic feature of inflation targeting is an explicit numerical target for inflation, as well as a major role for inflation forecast in monetary policy conduct due to lags in monetary transmission and a high degree of accountability and transparency. The success of inflation targeting lies in the fact that it combines the virtues of rule-based decision making with some degree of discretion.