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Inflation Targeting and Fiscal Rules :, Do Interactions and Sequencing Matter?, Jean-Louis Combes, Xavier Debrun, Alexandru Minea, Rene Tapsoba

The paper examines the joint impact of inflation targeting (IT) and fiscal rules (FR) on fiscal behavior and inflation in a broad panel of advanced and developing economies over the period 1990-2009. The main contribution of the paper is to show that, as suggested by the theoretical literature, interactions between FR and IT matter a great deal for policy outcomes. Specifically, the combination of FR and IT appears to deliver more disciplined macroeconomic policies than each of these institutions in isolation. In addition, the sequencing of the monetary and fiscal reforms plays a role: adopting FR before IT delivers stronger results than the reverse sequence
Table Of Contents
Cover; Abstract; Table of Contents; I. Introduction; II. Motivation and Literature Survey; A. Optimal Macroeconomic Institutions; B. Other Relevant Literature; C. Testable Hypotheses; III. Data and Stylized Facts; A. Variables of Interest: Inflation Targeting and Fiscal Rules; B. The Interaction between IT and FR and the Sequence of Adoption; C. Outcome variables; D. Stylized Facts; Figures; 1. PFB: IT_and_FR vs. FR_only; 2. Inflation: IT_and_FR vs. IT_only; 3. PFB: IT_after_FR vs. FR_after_IT; 4. Inflation: IT_after_FR vs. FR_after_IT; IV. Methodology; A. Specification; B. Identification
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (37 p.)
Specific Material Designation
Form Of Item

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