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Inflation targeting and volatility: Panel evidence

Author

Listed:
  • Zied SAYARI

    (Faculty of Economics of Grenoble, France)

  • Rima LAJNAF

    (University of Sfax, Tunisia)

Abstract

This article studies the effect of the transition to the regime of inflation targeting on the economic performance of the country and its ability to ensure better price stability. In order to verify the performance of this passage, we examine four factors: fiscal position, trade openness, financial openness and financial depth. The results show that the state of monetary, fiscal and financial system in emerging and developed countries plays a major role in controlling the dynamics. These results also show that the adoption of inflation targeting reduces the volatility of inflation in many countries.

Suggested Citation

  • Zied SAYARI & Rima LAJNAF, 2017. "Inflation targeting and volatility: Panel evidence," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 57-68, Spring.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:1(610):p:57-68
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    References listed on IDEAS

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    1. BILDIRICI, Melike & ERSIN, Ozgur Omer, 2007. "Domestic Debt, Inflation And Economic Crises: A Panel Cointegration Application To Emerging And Developed Economies," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    2. Frederic S. Miskin & Klaus Schmidt-Hebbel, 2007. "Does Inflation Targeting Make a Difference?," Central Banking, Analysis, and Economic Policies Book Series, in: Frederic S. Miskin & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Monetary Policy under Inflation Targeting, edition 1, volume 11, chapter 9, pages 291-372, Central Bank of Chile.
    3. Nicoletta Batini & Douglas Laxton, 2007. "Under What Conditions Can Inflation Targeting Be Adopted? The Experience of Emerging Markets," Central Banking, Analysis, and Economic Policies Book Series, in: Frederic S. Miskin & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Monetary Policy under Inflation Targeting, edition 1, volume 11, chapter 12, pages 467-506, Central Bank of Chile.
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    Cited by:

    1. Bruno Ferreira Frascaroli & Wellington Charles Lacerda Nobrega, 2019. "Inflation Targeting and Inflation Risk in Latin America," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(11), pages 2389-2408, September.

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