Impact of Inflation Targeting on Inflation Volatility
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- Muhammad Salimov
- 立命館アジア太平洋大学
説明
In this study, we investigate the impact of the inflation targeting (IT) regime on inflation volatility by applying treatment effects to a panel of 186 countries for the 1980–2018 period. We apply the differences-in-differences estimation to evaluate the pre-and post-adoption impact of the IT policy on reducing inflation volatility. Our estimation results demonstrate that IT countries have significantly reduced inflation volatility compared with non-IT countries. However, several countries suffer from historic hyperinflation, which significantly impacts IT after its adoption. Central banks adopt a similar price stability-centric approach in monetary policy execution. The crucial elements needed for effective IT policy implementation include financial market maturity, effective monetary policy transmission, and the overall macroeconomic stability of countries.
収録刊行物
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- Ritsumeikan Journal of Asia Pacific Studies
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Ritsumeikan Journal of Asia Pacific Studies 40 (1), 22-45, 2022
立命館アジア太平洋研究センター
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詳細情報 詳細情報について
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- CRID
- 1390573482959605632
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- ISSN
- 24324302
- 13444204
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- 本文言語コード
- en
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- データソース種別
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- JaLC
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- 抄録ライセンスフラグ
- 使用不可