Inflation Targeting and the Stationarity of Inflation: New Results from an ESTAR Unit Root Test

In this paper we examine the time series properties of inflation in seven countries that have adopted inflation targeting. Unlike previous studies we utilize a non-linear mean reverting adjustment mechanism for inflation and we discover that although deviations of inflation from the target can exhibit a region of non-stationary behavior, overall they are stationary indicating successful targeting implementation.

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Year of publication:	2005-10
Authors:	Gregoriou, Andros ; Kontonikas, Alexandros
Institutions:	Department of Economics, Adam Smith Business School

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	E31 - Price Level; Inflation; Deflation ; C32 - Time-Series Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005687354