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Inflation Targeting and Business Cycle Synchronization

Listed author(s):
  • 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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7377.

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Date of creation: Jul 2009
Handle: RePEc:cpr:ceprdp:7377
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