Economic growth under alternative monetary regimes: inflation targeting vs real exchange rate targeting
AbstractThe main features and implications of a monetary regime based on inflation targeting are examined and compared to a system based on real exchange rate targeting. The latter is very effective in stimulating economic growth, but the 'trilemma' reduces the effectiveness of stabilization based on open market operations. Inflation targeting is very effective in stabilizing prices but it hurts growth and employment. The dynamics of long-run equilibrium is also analyzed for both regimes.
Download InfoIf 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.
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 InfoArticle provided by Taylor & Francis Journals in its journal International Review of Applied Economics.
Volume (Year): 22 (2008)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIRA20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jose Antonio Cordero, 2009. "Costa Rica During the Global Recession: Fiscal Stimulus with Tight Monetary Policy," CEPR Reports and Issue Briefs 2009-23, Center for Economic and Policy Research (CEPR).
- James Heintz & Léonce Ndikumana, 2010. "Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?," Working Papers wp218, Political Economy Research Institute, University of Massachusetts at Amherst.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.