Inflation Targeting in Emerging Economies: Panel Evidence
By Ricardo Brito, Brianne Bystedt. 2010
284 citations recorded by the source corpus.
This paper shows there is no evidence that the inflation targeting regime (IT) improves economic performance as measured by the behavior of inflation and output growth in developing countries. The control of common time effects results in less negative and less significant IT impacts on inflation, inflation volatility and output growth volatility than previously found in the literature. Additionally, our analysis shows robust evidence of lower output growth during IT adoption. On balance, although lower long-run mean inflation signals that the central banks of emerging economies with inflation targeting are more inflation-averse, the costs of disinflation have not been lower than under other monetary regimes.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/7a8fe12da7d746624b57e96f6d03e5beef4e36c6
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In Economics and Econometrics
Citations in the corpus
- Flexible Inflation Targets, Forex Interventions and Exchange Rate Volatility in Emerging Countries (2012, unknown): “1 See Ball and Sheridan (2005) or Brito and Bystedt (2010) for some empirical evidence against the positive role of IT in developed and emerging countries, respectively.”
- Keynes at the periphery: Currency hierarchy and challenges for economic policy in emerging economies (2017, background): “…inflation and output performance between emerging economies that do and do not adopt ITR show no conclusive evidence that the first group performs better and that the differences between the two groups of countries with respect to inflation performance appears small (Brito and Bystedt, 2010).”