Moreover, some evidence suggests that average inflation as well as its volatility in prominent non-IT industrial countries has, in fact, been somewhat lower than that in prominent IT industrial countries. IT is not found to have any beneficial effect on the level of long-term interest rates either  BIS Review 145/2007  3  (Gramlich, 2003; Ball and Sheridan, 2003).
Furthermore, an IT framework reduces the flexibility available to a central bank in reacting to shocks (Kohn, 2003). EMEs face additional problems in an IT regime. These economies are typically more open and it exposes them to large exchange rate shocks which can have a significant influence on short-run inflation. A boom-bust pattern of capital flows can lead to substantial movements in exchange rates.