The lag in effect of inflation targeting and policy evaluation
The lag in effect of monetary policy contains vital information for the policy evaluation. Allowing for a time-varying treatment effect, we show that Inflation Targeting (IT) effectively lowers inflation for both developed and developing countries. Developed countries reach their targets rapidly with a 2-year lag in effect. Developing countries, however, reduce inflation gradually towards their targets and do not reach their ultimate goal by the end year of 2007.
Year of publication: |
2011
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Authors: | Fang, WenShwo ; Miller, Stephen |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 18.2011, 14, p. 1371-1375
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Publisher: |
Taylor & Francis Journals |
Saved in:
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