For every central bank in the world that issues its own currency, monetary policy is an overarching priority. Georgia is no different. We have come a long way since the introduction of the Georgian lari in 1995, and while there still is room for improvement, I can without exaggeration say that our monetary policy overall has been quite successful.
Its success rests on the inflation targeting framework — in place since 2009 — with the traditional prescriptions of monetary independence and exchange rate flexibility as cornerstones. Despite a long and bumpy road of almost 15 years, replete with severe economic shocks, the market’s medium-run inflation expectations are well anchored.
