2013
DOI: 10.1111/manc.12005
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Keep your Word: Time‐varying Inflation Targets and Inflation Targeting Performance

Abstract: This paper investigates the implicit inflation targets of inflation targeting (IT) central banks (CBs). The implicit (perceived) inflation targets of IT CBs derived from their actions (policy interest rates) are calculated before and after IT adoption. We conclude that after adoption of IT implicit targets become significantly lower. Other factors that cause CBs to change their implicit targets are inflation, exchange rate and trade balance. Finally, we find that CBs that do not follow their announced targets … Show more

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Cited by 1 publication
(1 citation statement)
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“…Quantity of money needs higher than the quantity of output. "A regular rise of general price level is called inflation" Tas and Demir (2013) found that "When the per capital income of an economy rises for a period of time and is calculated by the rising in the number of goods and services generated Article DOI: 10.52589/AJESD/CAH2IYQJ DOI URL: https://doi.org/10.52589/AJESD/CAH2IYQJ www.abjournals.org within a country, unemployment decrease. A good growing country produces more goods and services than the previous year.…”
Section: Review Of Literaturementioning
confidence: 99%
“…Quantity of money needs higher than the quantity of output. "A regular rise of general price level is called inflation" Tas and Demir (2013) found that "When the per capital income of an economy rises for a period of time and is calculated by the rising in the number of goods and services generated Article DOI: 10.52589/AJESD/CAH2IYQJ DOI URL: https://doi.org/10.52589/AJESD/CAH2IYQJ www.abjournals.org within a country, unemployment decrease. A good growing country produces more goods and services than the previous year.…”
Section: Review Of Literaturementioning
confidence: 99%