We construct an empirical test of whether the anticipation of adoption of inflation targeting affects the inflation rate. We observe that most of the central banks adopt the regime after first achieving significant disinflation. With pre-inflation-targeting-disinflation, initial targets are met...

This paper seeks to clarify the ways in which inflation targeting corresponds to a policy rule conceptually, and to assess the extent to which inflation targeters' policy can be described by policy rules in practice. Using central banks' inflation and output forecasts, the empirical analysis...

There has been much talk in the popular press about the difficulty of attaining credibility in the bond markets for the low-inflation policies that have been adopted by a number of central banks in recent years. This credibility problem is particularly severe for those countries that have a...

Monetary policy in CEE is an important determinant in the wage bargaining process, because trade unions have to predict inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an inflation target are tempted to act...

We examine the performance stability of firms in inflation-targeting countries before and after the 2008 global financial crisis. We use the propensity score method to analyze and compare firms in inflation-targeting and non-inflation-targeting countries, including both developed and developing...