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Abstract
In September 2006 National Bank of Serbia adopted new framework of monetary policy, i.e. Inflation targeting strategy. Accepting the experiences of the countries which have been implementing this strategy and the most successful practice, but also references of IMF, NBS in coordination with the Government of Serbia, due to preserving price stability, defined basic framework of inflation corridor, using the referent interest rates, as the key instrument for sustainable and transparent model of inflation targeting. Beside this key instrument, NBS defined using the other measures and instruments of monetary policy, as additional instruments with the main goal of suppressing inflation trends and unpredictable circumstances which could influence inflation. The goal of implementing this strategy refers to establishing the base inflation i.e. growth of retail prices which are under control of NBS instruments. Within a framework of this paperwork, and on the bases of implemented strategy, Inflation targeting of NBS and defined framework of monetary policy which are included in annual NBS Memorandums, the efficiency of realization of goals of monetary policy has been analyzed.NBS has accomplished successfully these goals, despite high inflatory pressure which has been passed on in the first quarter of 2008.