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Win or Lose, it’s the policy we choose: Comparative economic performance of the inflation targeters

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  • Beja, Edsel Jr.

Abstract

The inflation-growth relationship for the inflation targeters is estimated for the period 2001-2006. The results show that inflation is negatively correlated with economic growth, while the indicators for aggregate demand and aggregate supply are positively correlated with economic growth. The findings suggest that a combination of economic policies is more fruitful than a singular focus on inflation targeting. This conclusion is applicable to the case of the Philippines, where inflation is often driven by aggregate supply-linked factors rather than demand-linked factors.

Suggested Citation

  • Beja, Edsel Jr., 2007. "Win or Lose, it’s the policy we choose: Comparative economic performance of the inflation targeters," MPRA Paper 4833, University Library of Munich, Germany, revised 12 Sep 2007.
    • Handle: RePEc:pra:mprapa:4833
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    File URL: https://mpra.ub.uni-muenchen.de/12784/4/MPRA_paper_12784.pdf
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    References listed on IDEAS

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    Cited by:

    1. Beja, Jr., Edsel, 2009. "The Philippines on debt row," MPRA Paper 16553, University Library of Munich, Germany.
    2. Beja Jr, Edsel, 2010. "Is inflation targeting preferred by Filipinos?," MPRA Paper 24382, University Library of Munich, Germany.

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    More about this item

    Keywords

    Inflation targeting; inflation-growth tradeoff;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)

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