This article aims to review the monetary policy rule under inflation targeting framework focusing on Mongolia. The empirical analysis estimates the policy reaction function to see if the inflation targeting has been linked with a monetary policy rule emphasizing on inflation stabilization since its adoption in 2007. The study contributes to the literature by examining the linkage between Mongolian monetary policy rule and inflation targeting directly and thoroughly for the first time and also by taking into account a recent progress in the inflation targeting framework toward forward-looking mode. The main findings were: the Mongolian current monetary policy rule under inflation targeting is characterized as inflation-responsive rule with forward-looking manner (one quarter ahead); the inflation responsiveness is, however, weak enough to be pro-cyclical to inflation pressure; and the rule is also responsive to exchange rate due to the "fear of floating", which weakens the policy reaction to inflation and output gap.

中文翻译：

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蒙古通胀目标下的货币政策规则

本文旨在回顾针对蒙古的通胀目标框架下的货币政策规则。实证分析估计了政策反应函数，以查看通货膨胀目标是否与自2007年通过以来强调通货膨胀稳定的货币政策规则相关联。该研究通过检查蒙古的货币政策规则与通货膨胀目标之间的联系为文献做出了贡献首次直接，彻底，也考虑到通货膨胀目标框架朝着前瞻性模式的最新进展。主要发现是：蒙古现行的通货膨胀目标下的货币政策规则的特征是具有前瞻性的通货膨胀响应规则（提前四分之一）；通胀反应能力是 弱到足以使通货膨胀压力顺周期性；该规则还因“害怕浮动”而对汇率作出反应，这削弱了政策对通货膨胀和产出缺口的反应。