Journal article
Re-evaluating the effectiveness of inflation targeting
Journal of economic dynamics & control, Vol.90, pp.76-97
05/01/2018
DOI: 10.1016/j.jedc.2018.01.045
Abstract
This paper estimates the treatment effect of inflation targeting on macroeconomic variables using a semiparametric single index method by taking into account the model misspecification of parametric propensity scores. Our study uses a broader set of preconditions for inflation targeting and macroeconomic outcome variables than the existing literature. The results suggest no significant difference in the inflation level and inflation volatility between targeters and non-targeters after the adoption of inflation targeting. We find that inflation targeting reduces sacrifice ratio and interest rate volatility in the developed economies, and that it enhances fiscal discipline in both the industrial and developing countries.
Details
- Title: Subtitle
- Re-evaluating the effectiveness of inflation targeting
- Creators
- Omid M. Ardakani - Georgia Southern UniversityN. Kundan Kishor - University of Wisconsin–MilwaukeeSuyong Song - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of economic dynamics & control, Vol.90, pp.76-97
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.jedc.2018.01.045
- ISSN
- 0165-1889
- eISSN
- 1879-1743
- Language
- English
- Date published
- 05/01/2018
- Academic Unit
- Economics; Finance
- Record Identifier
- 9984380458802771
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