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Inflation targeting and business cycle synchronization

  • Flood, Robert P.
  • Rose, Andrew K.

Inflation targeting seems to have a small but positive effect on the synchronization of business cycles; countries that target inflation seem to have cycles that move slightly more closely with foreign cycles. Thus the advent of inflation targeting does not explain the decoupling of global business cycles, for two reasons. Indeed business cycles have not in fact become less synchronized across countries.

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Article provided by Elsevier in its journal Journal of International Money and Finance.

Volume (Year): 29 (2010)
Issue (Month): 4 (June)
Pages: 704-727

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Handle: RePEc:eee:jimfin:v:29:y:2010:i:4:p:704-727
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30443

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