Advanced Search
MyIDEAS: Login to save this article or follow this journal

Testing the impact of inflation targeting on inflation


Author Info

  • George B. Tawadros
Registered author(s):


    Purpose – The purpose of this paper is to examine the impact of inflation targeting on inflation for 27 countries that have adopted an inflation-targeting regime. Design/methodology/approach – The paper uses intervention analysis in Harvey's structural time series model to analyse the impact of inflation targeting on inflation, using quarterly observations. This approach provides the most useful framework for separating changes that occur to a series ordinarily over time from those happening due to exogenous events identified a priori, such as inflation targeting. Findings – The empirical evidence suggests that almost all of the central banks that have pursued this strategy have been unsuccessful at controlling inflation, with the results indicating that the adoption of an inflation-targeting regime has had the perverse effect on inflation for almost every country. Practical implications – The implication of the finding is that central banks which have adopted an inflation-targeting regime do not appear to have been particularly successful in reducing inflation in any significant way, as is regularly claimed in the extant literature. Originality/value – The paper provides further evidence against the adoption of an inflation-targeting regime using an unconventional approach for 27 countries that are regarded as “fully-fledged” inflation-targeting countries.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:;jsessionid=34419201813DD8361C463AEE1DC94A96?contentType=Article&contentId=1811627
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

    Volume (Year): 36 (2009)
    Issue (Month): 4 (September)
    Pages: 326-342

    as in new window
    Handle: RePEc:eme:jespps:v:36:y:2009:i:4:p:326-342

    Contact details of provider:
    Web page:

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK

    Related research

    Keywords: Banking; Inflation; Monetary policy;


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Sorin-Constantin Deaconu, 2012. "“The Net Monetary Statement” and “The Net Non-Monetary Statement” – Assessment Indicators for The Financial Position of The Entity," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(3), pages 49-56.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:36:y:2009:i:4:p:326-342. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.