“…Quite a few studies in the literature (e.g., Carare and Stone, 2006;Fraga et al, 2003;Fry et al, 2000;Masson et al, 1997;Minella et al, 2003;Mishkin, 1996;Mishkin, 2004;Mishkin and Savastano, 2001;Svensson, 2002) argue that the performance of an inflation targeting regime can be affected by these idiosyncrasies. Therefore, in addition to evaluating the average treatment effects, it is also important to explore the heterogeneity feature of the effectiveness of adopting inflation targeting in developing countries.…”