We study the characteristics of inflation targeting as a shock absorber, using quarterly data for a large panel of … natural disasters. We find that inflation targeting improves macroeconomic performance following such exogenous shocks. It … lowers inflation, raises output growth, and reduces inflation and growth variability compared to alternative monetary regimes …

rate both matter for determining inflation and economic activity. …

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …