A Post Keynesian Proposal for a Flexible Institutional Arrangement of Inflation Targeting Regime in Emerging Economies
The paper aims at discussing whether inflation target regime (ITR) is compatible with Post Keynesian Approach (and in what conditions it can be), and mainly defining an institutional arrangement of ITR more appropriate for emerging economies with long-term history of high inflation. In this sense the paper held that ITR can be compatible with Post Keynesian approach if a flexible institutional arrangement is adopted. In particular, a flexible ITR arrangement can be required for emerging economies that had recent high inflation history in order to conciliate the objectives of price stabilization and sustainable economic growth.
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