European Parliament Library

What Can Low-Income Countries Expect From Adopting Inflation Targeting?, Alexandra Born, Sarwat Jahan, Edward Gemayel

Inflation targeting (IT) is a relatively new monetary policy framework for low-income countries (LICs). The limited number of LICs with an IT framework and the short time that has elapsed since the adoption of this framework explains why there are no previous empirical studies on the performance of IT in LICs. This paper has made a first attempt at filling this gap. It finds that inflation targeting appears to be associated with lower inflation and inflation volatility. At the same time, there is no robust evidence of an adverse impact on output. This may explain the appeal of IT for many LICs, where building credibility of monetary policy is difficult and minimizing output costs of reducing inflation is imperative for social and political reasons
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Appendix Tables; Appendixes; Boxes; Figures; Tables; 1. Key Elements of Inflation Targeting; 1. Advanced Economies: Inflation and Growth; 2. Emerging Economies: Inflation and Growth; 2. Why Inflation Targeting?; A. Ghana; B. Armenia; C. Others; A. Results for Advanced Economies; B. Results for Emerging Market Economies; A. Difference-in-Difference Analysis; 1. Specification Overview: Period and Country Samples; 2. Regression Results for Inflation and Inflation Volatility, Low-Income Country Control Group (Diff-in-Diff method)
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (83 p.)
Specific Material Designation
Form Of Item

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