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Effectiveness and Commitment To Inflation Targeting Policy: Evidences 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 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 implementations of the IT policy in these two Southeast Asian economies have largely been "flexible" during the stable period, seeking the balance between narrowing output gap, managing exchange rate volatility, and anchoring inflationary pressure. However during the turbulent period, there had been a heightened focus in anchoring inflationary expectation. (This paper has also been published in the Journal of Asian Economics, Vol. 21, No.2, April 2010, http://www.sciencedirect.com/science/journal/10490078).

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Bibliographic Info

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This book is provided by South East Asian Central Banks (SEACEN) Research and Training Centre in its series Staff Papers with number sp73 and published in 2009.

ISBN: 983-9478-78-8
Handle: RePEc:sea:spaper:sp73

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Citations

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Cited by:
  1. Pierre-Richard Agénor & Luiz A. Pereira da Silva, 2011. "Macroprudential Regulation and the Monetary Transmission Mechanism," Working Papers Series 254, Central Bank of Brazil, Research Department.
  2. 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).
  3. Pierre-Richard Agénor & Luiz A. Pereira da Silva, 2013. "Inflation Targeting and Financial Stability: A Perspective from the Developing World," Working Papers Series 324, Central Bank of Brazil, Research Department.
  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.
  5. Siregar, Reza & Wiranto, Willeam, 2009. "In the Midst of Global Financial Slowdown: the Indonesian Experience," MPRA Paper 19657, University Library of Munich, Germany.

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