Abstract. This article studies the effect of the transition to the regime of inflation targeting on the economic performance of the country and its ability to ensure better price stability. In order to verify the performance of this passage, we examine four factors: fiscal position, trade openness, financial openness and financial depth. The results show that the state of monetary, fiscal and financial system in emerging and developed countries plays a major role in controlling the dynamics. These results also show that the adoption of inflation targeting reduces the volatility of inflation in many countries.

Keywords: Inflation targeting, economic performance, volatility.