Inflation Targeting in Practice

Debelle, Guy

doi:10.5089/9781451845310.001

Cited by 63 publications

(69 citation statements)

References 13 publications

(13 reference statements)

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“…The evidence produced by the same study, however, does not enable the authors to support the contention that IT is superior to money supply targeting (for example, the Bundesbank monetary targeting between 1974 and 1998), or to the Fed's monetary policy in the 1980s and 1990s (which pursued neither a monetary nor an inflation targeting policy). Similar results are provided by Debelle (1997), who compares average inflation levels for seven IT countries with G7 countries excluding non-ITers. This contribution finds a much steeper decline in inflation in the case of the former group, concluding that IT is useful for countries facing lack of anti-inflation credibility.…”

Section: Evidence Of It Impact On Levels and Persistence Of Inflationsupporting

confidence: 66%

“…It is also pointed out in the same study that this is also the case for non-IT targeters, and it should not be surprising as both groups of countries present lower inflation levels. Similarly, Debelle (1997) reports a significant decline in the spread of long bond yields in IT countries relative to US (used as a benchmark). The author considers this change as an indicator of enhanced credibility, but points out that other factors may have also contributed to this apparent success.…”

Section: Evidence Of It Impact On Inflation Expectationsmentioning

confidence: 99%

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Inflation Targeting: Assessing the Evidence

Angeriz

Arestis

2007

Issues in Finance and Monetary Policy

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The aim of this chapter is to deal with the empirical aspects of the 'new' monetary policy framework, known as Inflation Targeting. We review the evidence for both developed and emerging economies. The emphasis, though, is on emerging economies, which can be thought of as preparing the ground for the chapter to follow that concentrates on the experience with inflation targeting in Brazil. The results gathered in this study demonstrate that although Inflation Targeting has gone hand-in hand with low inflation, it is very far from declaring the strategy a resounding success. The evidence produced in this chapter suggests that non-Inflation-Targeting central banks have also been successful on this score. At a general level this chapter should be read as providing the necessary prolegomena for the chapter that follows, which concentrates crucially on the Brazilian experience. JEL Classification: E31, E52 IntroductionInflation Targeting (IT) as a policy framework, designed to tame inflation, has been with us since the early 1990s. Recent work makes the point that a significant number of countries adopted this strategy, and the number is growing. For example, Sterne (2002, Appendix A) suggests that 54 countries pursued one form or another of IT by 1998, compared with only 6 in 1990. A more recent study (IMF, 2005) suggests that 21 countries (8 developed and 13 emerging) are now clear inflation targeters, pursuing a full-fledged IT strategy (FFIT in short). Indeed, a number of other countries are seriously considering the adoption of this strategy. Many studies have attempted to examine empirically the degree and extent of the impact of IT on inflation in various countries. We review this literature in what follows and conclude that the available empirical evidence produces mixed results, although the case with developing countries is less clear-cut.

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Section: Evidence Of It Impact On Levels and Persistence Of Inflationsupporting

confidence: 66%

Section: Evidence Of It Impact On Inflation Expectationsmentioning

confidence: 99%

Inflation Targeting: Assessing the Evidence

Angeriz

Arestis

2007

Issues in Finance and Monetary Policy

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“…One accepted approach in the literature is the case study analysis. Comprehensive analyses are presented in Leiderman and Svensson (1995) and Bernanke et al (1999), as well as Debelle (1997) and Blejer et al (2000).…”

Section: Common Features Experienced By the Advanced Economiesmentioning

confidence: 99%

“…Sufficient historical data is needed for the estimation of relationships that can be viewed as relatively stable under the new regime. Debelle (1997) mentions that the expectation about the future path of inflation need not be based on a particular model. However, Bernanke and Woodford (1996) argue that the decisions of the Central Bank under an IT framework should be based on "explicit structural models of the economy".…”

Section: Theoretical Basementioning

confidence: 99%

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Inflation Targeting in Practice: A Survey

Petrova¹

2012

IJBM

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Since its first introduction in New Zealand in 1990, inflation targeting has been successfully adopted in several industrialized countries-Canada, the United Kingdom, Sweden, Finland, Australia in the early 1990s; and Iceland and Norway a decade later. More recently, several emerging market economies (Mexico, Israel, Chile, and Brazil among them) have tried to move in the same direction. I have performed a cross-country comparison of the application of inflation targeting framework. Reviewing case studies and empirical evidence from the past twenty years, I present and summarize the most recent results and practical issues experienced by the emerging market economies, as well as the necessary steps that should be considered to ensure a successful implementation.

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Implementing Inflation Targeting Regimes: The Case of Poland

Gottschalk

Moore

2001

Journal of Comparative Economics

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Inflation Targeting in Practice

Cited by 63 publications

References 13 publications

Inflation Targeting: Assessing the Evidence

Inflation Targeting: Assessing the Evidence

Inflation Targeting in Practice: A Survey

Implementing Inflation Targeting Regimes: The Case of Poland

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