Since New Zealand adopted Inflation Targeting as a monetary policy in 1990, many countries have adopted inflation targeting. Due to the high accountability and high transparency of central banks under IT policy, it is expected to achieve price stability easily. In this paper, we investigate...

This paper argues case that a tighter fiscal policy stance can meaningfully support central banks in fighting inflation in both advanced and emerging market economies. While the standard textbook result suggest that monetary policy is much more effective than fiscal policy in battling inflation...