INTRODUCTIONSince the 1990s, a large number of industrialized countries and a growing number of emerging and transition economies have adopted inflation targeting as a monetary policy strategy. During implementation, they face many challenges. However, there is no set model, so countries must learn from each other and, more importantly, from their own experience. This paper provides an overview of inflation targeting as a monetary policy strategy, the necessary prerequisites for its successful implementation, its advantages and disadvantages. and the issues and challenges that emerging and transition market economies face in defining and implementing this monetary policy strategy. Inflation Targeting as a Monetary Policy Strategy Macroeconomic policy of any country has several objectives such as employment, economic stability, economic development and output growth. These objectives are achieved through appropriate fiscal and monetary policy carried out by the “most important players in financial markets”, the central banks. Sound macroeconomic policy means a healthy economy that can be achieved through one of three monetary strategies: monetary targeting, inflation targeting, and implicit nominal anchoring. Central banks are held responsible for the conduct of monetary policy and the achievement of objectives. In other words, these schemes appear to be very transparent. Furthermore, what these three strategies have in common is that they all focus on price stability, which for most central banks around the world is the primary objective of monetary policy. Not long ago, policymakers reintroduced the idea of ​​targeting. They first introduced monetary targeting in the 1970s and 1980s, and again in 1989. middle of article......//www2.gsb.columbia.edu/faculty/fmishkin/PDFpapers/w5893. pdf• Mishkin, Frederic S. and Schmidt-Hebbel, K., 2006, “Does Inflation Targeting Make a Difference? Central Bank of Chile Working Papers No. 404, available at http://www.bcentral.cl/estudios/documentos-trabajo/pdf/dtbc404.pdf• ​​Johnson, D., 2002, “The Effect of Inflation Targeting on the Behavior of Expected Inflation: Evidence from an 11 Country Panel”, Journal of Monetary Economics 49, pp.1521-1538; • Gerlach, S., 1999, “Who explicitly targets inflation? » European Economic Review 43, pp.1257-1277; • Lin, S. and Ye, H., 2009, “Does inflation targeting make a difference in developing countries? » Journal of Development Economies 89, pp.118-123; • Cukierman, A., 1996, The Economics of Central Banking, in: H. Wolf (ed.) Contemporary Economic Issues: Macronomic and Finance, Basingstoke, United Kingdom: Macmillan.