Inflation targeting can be defined as a framework for the conduct of monetary policy, in which the central bank uses its instruments in order to drive inflation near a preannounced target.

While understanding this framework is straightforward, its practical implementation may be far more demanding.

In the real world, full information and knowledge of the monetary policy transmission mechanism (magnitudes and lags) is imperfect, hence achieving consensus on any moment of the probability distribution of exogenous variables is very difficult.