||This thesis focuses on the monetary policy regime of inflation targeting and estimates reaction functions of the certain central banks in the period of 2002 – 2008. The central banks using this regime are: Czech National Bank, Reserve Bank of New Zealand, Bank of England and Swedish Riksbank. The European Central Bank was also included because of its responsibility for monetary policy in the majority of Europe and because of the expected responsibility spread on selected European countries. The results indicate that in the process of decision-making regarding the monetary policy instruments, the banks are influenced by their past values, by the development of inflation and the output gap. There is an unusual relationship between these influences and the most significant impact on determining the monetary policy instruments is due to the output gap development. It might be caused by the length and selection of the period under consideration. In this case the end of the period is significantly influenced by the world economic crisis.