CRITICAL EVALUATION OF THE INFLATION TARGETING REGIME FROM A POST-KEYNESIAN PERSPECTIVE

Abstract

This article aims to analyze whether the inflation targeting regime (ITR) and the post-Keynesian theory are (or not) compatible. This subject became relevant, specially, due to the fact that recently some academic articles, based on a post-Keynesian approach, have conciliated this theory with ITR, raising, thus, a debate among the post-Keynesians. The article presents the main characteristics of the ITR and the post-Keynesian theory, aiming at highlighting the arguments involved in this debate. The main conclusion is that, although some authors claim that there is possible a compatibility between the ITR and the post-Keynesian theory, this theory is incompatible with the theoretical pillars that support the ITR.