Empirical Assessment of Inflation Targeting (Analysis of Selected Economic Statistics)

Grzegorz Walerysiak

doi:10.2478/cer-2013-0023

Authors

Grzegorz Walerysiak Wrocław University of Environmental and Life Sciences, The Faculty of Life Sciences and Technology, Institute of Economics and Social Sciences

DOI:

https://doi.org/10.2478/cer-2013-0023

Abstract

Inflation Targeting (IT) is used by about 30 countries (both developed and developing countries) around the world, and the number of countries was said to increase (IMF 2005). IT strategy was created as a way of getting inflation under control. The global crisis of recent years has given a new perspective to IT strategy and its effectiveness. The most obvious way of analyzing the effects of IT is to compare characteristics of inflation for periods before and after its implementation. So in my research I try to answer following comparative aspects: First, how does IT strategy work, and second, how does it work in the situation of global turmoil? I analyzed the years before and after implementation of IT strategy for those countries which employ it, as well as its implementation and effect during the time of the global crises.

Downloads

Download data is not yet available.

References

Angeriz A., Arestis Ph. (2007), Inflation targeting: assessing the evidence, Cambridge Centre for Economic and Public Policy, Department of Land Economy, University of Cambridge
Google Scholar

Apergis, N., S.M. Miller, M. Panethimitakis, A.Vamvakidis (2005), Inflation Targeting and Output Growth: Empirical Evidence for the European Union, ‘IMF Working Paper’, WP/05/89
Google Scholar

Batini, N., K. Kuttner, D. Laxton. (2005), Does Inflation Targeting Work in Emerging Markets?, ‘World Economic Outlook’ chapter 4. International Monetary Fund
Google Scholar

Bernanke B., M. Woodford, (2005), The Inflation Targeting Debate, University of Chicago Press, Chicago Illinois
Google Scholar

Blanchard 2005 Olivier Blanchard, 2004 Fiscal Dominance and Inflation Targeting: Lessons from Brazil, ‘NBER Working Papers’ 10389, National Bureau of Economic Research, Inc.
Google Scholar

Cavoli T., Rajan R.S. (2006), Monetary policy rules for small and open developing economies: a counterfactual policy analysis, ‘Journal of Economic Development’, volume 31, number 1, June
Google Scholar

Céspedes L.F. C. Soto (2005), Credibility and Inflation Targeting in an Emerging Market: Lessons from the Chilean Experience. ‘International Finance’ 8(3)
Google Scholar

Corbo V, Landerrechte K. Schmidt-Hebbel (2002), Corbo, V. and K. Schmidt-Hebbel. 2001. ʻInflation Targeting in Latin America.ʼ Central Bank of Chile Working Paper No. 105
Google Scholar

Gallego F., G. Jones (2005), Exchange rate interventions and insurance: is “fear of floating” a cause for concern?, ‘Working Papers’, Central Bank of Chile, nº 326
Google Scholar

Garcia-Solanes and Torrejón-Flores (2006) José García-Solanes, Fernando Torrejón-Flores, Inflation targeting works well in Latin America, Universidad Católica De San Antonio, Murcia, May 2009
Google Scholar

Johnson D.R. (2002), The Effect of Inflation Targeting on the Behavior of Expected Inflation: Evidence from an 11 Country Panel, ‘Journal of Monetary Economics’ 49 (8)
Google Scholar

Habermeier K., İnci Ötker-Robe I., L. Jacome, A. Giustiniani, K. Ishi, D. Vávra, T. Vazquez (2009), Inflation Pressures and Monetary Policy Options in Emerging and Developing Countries: A Cross Regional Perspective, ‘IMF Working Paper’ 09/1, International Monetary Fund, Washington
Google Scholar

Hammond G. (2012), State of the art of inflation targeting, ‘CCBS Handbook’, Centre for Central Banking Studies, No. 29 – February 2012 version, London
Google Scholar

Heintz J., L. Ndikumana (2010), Is There a Case for Formal Inflation Targeting in Sub-Saharan Africa?, ‘Working Papers, Political Economy Research Institute, University of Massachusetts at Amherst, wp218
Google Scholar

International Monetary Fund (2005), Does Inflation Targeting Work in Emerging Markets?, ‘World Economic Outlook’, Chapter IV, September, Washington
Google Scholar

King M. (2005), Monetary Policy: Practice ahead of Theory Mais Lecture, Lecture delivered on 1 7 May 2005 at the Cass Business School, City University, London,
Google Scholar

http://www.bankofengland.co.uk/publications/Documents/speeches/2005/speech245.pdf
Google Scholar

Leiderman L., R. Maino, E. Parrado (2006), Inflation Targeting in Dollarized Economies, ‘IMF Working Paper’ 06/157, IMF
Google Scholar

Libanio G. (2005), Good Governance in monetary policy and the negative real effects of inflation targeting in developing economies, Texto para discussao, Nº 277, CEDEPLAR/FACE/UFMG, available at http://www.scielo.br/scielo.php
Google Scholar

Martínez G. O. (2008), Inflation Targeting, Bank of Canada a festschrift in honor of David Dodge, Bank of Canada, November
Google Scholar

McDermott J., D. McMenamin (2008), Assessing Inflation Targeting in Latin America with a DSGE Model, ‘Working Paper’, Central Bank of Chile, Nº 469
Google Scholar

Mishkin F. (2001), Inflation Targeting, available at citeseerx.ist.psu.edu/
Google Scholar

Mishkin, F.S. and K. Schmidt-Hebbel. 2002. A Decade of Inflation Targeting in the World: What Do We Know and What Do We Need to Know? [in:] edited by N. Loayza and R. Soto Inflation Targeting: Design, Performance, Challenges, 171–219. Santiago: Central Bank of Chile
Google Scholar

Monetary Policy under Inflation Targeting, (2007) edited by F. Mishkin, K. Schmidt-Hebbel, Santiago, Chile. Central Bank of Chile
Google Scholar

Mello and Moccero 2007 Mello, L. and Moccero D. (2007). Monetary Policy and Macroeconomic Stability in Latin America: The Cases of Brazil, Chile, Colombia and Mexico. ‘Working Papers’ Nº 545. Economics Department OECD
Google Scholar

Murray J. (2006), Future Trends in Inflation Targeting: A Canadian Perspective. Presented at the conference co-sponsored by the New York Association for Business
Google Scholar

Roger S. (2010) Inflation Targeting Turns 20, ʻFinance & Developmentʼ, March
Google Scholar

Rogoff 2003 Rogoff, K. S. (2003), Globalization and Global Disinflation. [in:] Monetary Policy and Uncertainty: Adapting to a Changing Economy, 77–112. Proceedings of a symposium sponsored by the Federal Reserve Bank of Kansas City, August 2003. Jackson Hole, Wyoming
Google Scholar

Rose A. (2007), A Stable International Monetary System Emerges: Inflation Targeting is Bretton Woods, Reversed, ‘Journal of International Money and Finance’ 26
Google Scholar

Sobrino C.R. (2010), The Effects of Inflation Targeting on the Current Account: An Empirical Examination, 'Economics Bulletin’, Vol. 30 no. 2
Google Scholar

The Dominican Republic Central Bank News; Monetary Board Authorizes Central Bank to Adopt Inflation Targeting, 2012-01-19 available at http://www.bancentral.gov.do/english/index-e.asp
Google Scholar

Walsh C. (2009), Inflation targeting: What have we learned?, ‘International Finance, 12:2
Google Scholar