Does Inflation Targeting Matter? / Niamh Sheridan, Laurence Ball.

Format:

Book

Author/Creator:

Sheridan, Niamh, author.

Ball, Laurence M., author.

Series:

Working paper series (National Bureau of Economic Research) ; Number 9577.

Working paper series (National Bureau of Economic Research) ; Number 9577

Language:

English

Subjects (All):

Inflation (Finance).

Monetary policy.

Anti-inflationary policies.

Time-series analysis.

OECD countries--Economic conditions.

OECD countries.

Physical Description:

1 online resource (33, 15 unnumbered pages) : illustrations.

Place of Publication:

Cambridge, MA : National Bureau of Economic Research, 2003.

Summary:

This paper asks whether inflation targeting improves economic performance, as measured by the behavior of inflation, output, and interest rates. We compare seven OECD countries that adopted inflation targeting in the early 1990s to thirteen that did not. After the early 90s, performance improved along many dimensions for both the targeting countries and the non-targeters. In some cases the targeters improved by more; for example, average inflation fell by a larger amount. However, these differences are explained by the facts that targeters performed worse than non-targeters before the early 90s, and there is regression to the mean. Once one controls for regression to the mean, there is no evidence that inflation targeting improves performance.

Notes:

Description based on publisher supplied metadata and other sources.