M. Ardakani, Omid
[VerfasserIn]
;
Kishor, N. Kundan
[Sonstige Person, Familie und Körperschaft];
Song, Suyong
[Sonstige Person, Familie und Körperschaft]
Re-Evaluating the Effectiveness of Inflation Targeting
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 24, 2018 erstellt
Beschreibung:
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