Inflation Targeting Regimes

By A. Carare, M. Stone. Social Science Research Network, 2006

166 citations recorded by the source corpus.

This paper classifies countries that define their monetary policy framework by an inflation target into full-fledged inflation targeters, eclectic inflation targeters and inflation targeting lite regimes. This classification is based on indicators of the clarity and credibility of the commitment to the inflation target. The three regimes can be viewed as corresponding to different welfare maximizing combinations of policy objectives, each conditional on a country`s endowed level of credibility. The credibility of the regimes is related empirically to structural differences. Policy implications are drawn, especially for emerging market countries aiming at full-fledged inflation targeting.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/011d697c3538f0af7563a498fc778f007400ac3d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. J. Klomp
2. C. Walsh
3. Scott Roger
4. Jakob de Haan
5. M. Stone
6. Carlos Thomas
7. Niklas Potrafke
8. Axel Dreher

In Finance

1. J. Klomp
2. C. Walsh
3. Jakob de Haan
4. Scott Roger
5. M. Stone

Citations in the corpus

• On Target? the International Experience with Achieving Inflation Targets (2005, background): “First, there is what has been termed a “just do it” (Mishkin, 2000) or “implicit price stability anchor” (IPSA) regime (Carare and Stone, 2005), for example, the United States, the European Central Bank (ECB), and Switzerland.”
• Central bank independence and financial instability (2009, background): “1 Financial instability indicator In the analyses of Garcia Herrero and Del Rio (2003) and Čihák (2007) financial instability is proxied by the occurrence of banking crises.”
• Monetary Theory and Policy, 2nd Edition (2003, background): “For evaluations of inflation targeting, see Mishkin and Schmidt-Hebbel (2002; 2007); Carare and Stone (2002); Batinit and Laxton (2007); and Walsh (2009).”