Our investigation of the early experience with IT in EMEs confirms that—as in the industrial countries—the
adoption of IT has generally not been associated with an instantaneous adjustment of inflation expectations. Furthermore, while most of these EMEs have succeeded in reducing average inflation to very low levels, the volatility of inflation has remained quite high, with relatively frequent overshooting and undershooting of the target bands. Such volatility is not necessarily surprising, given that most of the EMEs are small and highly sensitive to global economic fluctuations. Thus, additional research and experience will be helpful in finetuning the implementation of IT and ensuring its positive contribution to macroeconomic stability