This IMF Working Paper proposes a new taxonomy of monetary regimes defined by the choice and clarity of the nominal anchor. The regimes are: (i) monetary nonautonomy, (ii) weak anchor, (iii) money anchor, (iv) exchange rate peg, (v) full-fledged inflation targeting, (vi) implicit price stability anchor, and (vii) inflation targeting lite. Empirical analysis suggests that country regime choices reflect the level of financial and economic development and recent inflation history, the paper finds.

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