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Effectiveness and commitment to inflation targeting policy: Evidence from Indonesia and Thailand

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  • Siregar, Reza Yamora
  • Goo, Siwei

Abstract

The chief objective of our paper is to highlight basic features of the Information Technology (IT) policies adopted by Indonesia and Thailand, and to evaluate the commitment of the monetary authorities and the overall performances of the IT regime. The results demonstrate that the IT regime in these two economies has had some success, but not during the immediate aftermath of the Lehman Brothers' collapse in the last quarter of 2008. Furthermore, the implementation IT policy in these economies has largely been "flexible" during the stable period, seeking the balance between narrowing the output gap, managing exchange rate volatility, and anchoring inflationary pressure. However during the turbulent period, there had been a heightened focus on anchoring inflationary expectations.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 21 (2010)
Issue (Month): 2 (April)
Pages: 113-128

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Handle: RePEc:eee:asieco:v:21:y:2010:i:2:p:113-128

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Web page: http://www.elsevier.com/locate/asieco

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Keywords: Inflationary expectation Output gap Inflation targeting Pass-through Monetary policy rule;

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References

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Citations

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Cited by:
  1. Inoue, Takeshi & Toyoshima, Yuki & Hamori, Shigeyuki, 2012. "Inflation targeting in Korea, Indonesia, Thailand, and the Philippines : the impact on business cycle synchronization between each country and the world," IDE Discussion Papers 328, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Siregar, Reza & Wiranto, Willeam, 2009. "In the Midst of Global Financial Slowdown: the Indonesian Experience," MPRA Paper 19657, University Library of Munich, Germany.
  3. Siti Hamizah Mohd & Ahmad Zubaidi Baharumshah & Stilianos Fountas, 2012. "Inflation, Inflation Uncertainty and Output Growth: Recent Evidence from ASEAN-5 Countries," Discussion Paper Series 2012_07, Department of Economics, University of Macedonia, revised Jul 2012.
  4. Siregar, Reza & Pontines, Victor & Mohd Hussain, Nurulhuda, 2010. "The US Subprime Crises and Extreme Market Pressures in Asia," MPRA Paper 22995, University Library of Munich, Germany.

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