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Does Inflation Targeting Work Well? Evidence from CEE Countries

Listed author(s):
  • Chen Wang

    ()

    (Research School of Finance (RSFAS), Australian National University, Canberra
    Division of Science and Technology, United International College, Zhuhai, China)

Registered author(s):

    This article examines the effects of inflation targeting (IT) policy on inflation and output performance. I employ the propensity score matching method for the sample of CEE countries from 1990 to 2010. The evidence suggests that the IT regime does not have a significant effect on the inflation level or the inflation volatility; however, the IT framework can help to increase GDP per capita. The effects on inflation indicators are inconsistent with previous studies. The results are robust to different methodologies.

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    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.2016.66.3.1
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    Article provided by Akadémiai Kiadó, Hungary in its journal Acta Oeconomica.

    Volume (Year): 66 (2016)
    Issue (Month): 3 (September)
    Pages: 375-392

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    Handle: RePEc:aka:aoecon:v:66:y:2016:i:3:p:375-392
    Note: I am greatly indebted to Professor Renée Fry-McKibbin and Dr. Gaurab Ayal for their helpful suggestions and advice. I am also grateful to the two anonymous referees for their comments. All remaining errors are my own.
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