Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies

This paper examines the effects of inflation targeting (IT) on output growth over the "globalization years" of 1986-2004. Employing static panel data methods that control for traditional growth determinants, trade openness and financial globalization, the paper finds that the adoption of a...

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Main Authors:	Mollick, Andre Varella, Cabral, Rene, Carneiro, Francisco G.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Production E230 Price Level Inflation Deflation E310 Monetary Policy E520 Macroeconomic Analyses of Economic Development O110 Fiscal and Monetary Policy in Development O230
Online Access:	http://hdl.handle.net/10986/4781

id	okr-10986-4781
recordtype	oai_dc
spelling	okr-10986-47812021-04-23T14:02:19Z Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies Mollick, Andre Varella Cabral, Rene Carneiro, Francisco G. Macroeconomics: Production E230 Price Level Inflation Deflation E310 Monetary Policy E520 Macroeconomic Analyses of Economic Development O110 Fiscal and Monetary Policy in Development O230 This paper examines the effects of inflation targeting (IT) on output growth over the "globalization years" of 1986-2004. Employing static panel data methods that control for traditional growth determinants, trade openness and financial globalization, the paper finds that the adoption of a fully fledged IT regime results in higher output income per capita for industrial and emerging economies. However, under dynamic model specifications, the estimated long-run output impact of inflation targeting for emerging market economies is found to be lower than in the case of static models. We argue that this might be due to the long lags until the full effects of greater credibility are felt in the real economy and the fact that emerging market economies adopted the regime much later than industrial economies. 2012-03-30T07:29:43Z 2012-03-30T07:29:43Z 2011 Journal Article Journal of Policy Modeling 01618938 http://hdl.handle.net/10986/4781 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Production E230 Price Level Inflation Deflation E310 Monetary Policy E520 Macroeconomic Analyses of Economic Development O110 Fiscal and Monetary Policy in Development O230
spellingShingle	Macroeconomics: Production E230 Price Level Inflation Deflation E310 Monetary Policy E520 Macroeconomic Analyses of Economic Development O110 Fiscal and Monetary Policy in Development O230 Mollick, Andre Varella Cabral, Rene Carneiro, Francisco G. Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper examines the effects of inflation targeting (IT) on output growth over the "globalization years" of 1986-2004. Employing static panel data methods that control for traditional growth determinants, trade openness and financial globalization, the paper finds that the adoption of a fully fledged IT regime results in higher output income per capita for industrial and emerging economies. However, under dynamic model specifications, the estimated long-run output impact of inflation targeting for emerging market economies is found to be lower than in the case of static models. We argue that this might be due to the long lags until the full effects of greater credibility are felt in the real economy and the fact that emerging market economies adopted the regime much later than industrial economies.
format	Journal Article
author	Mollick, Andre Varella Cabral, Rene Carneiro, Francisco G.
author_facet	Mollick, Andre Varella Cabral, Rene Carneiro, Francisco G.
author_sort	Mollick, Andre Varella
title	Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
title_short	Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
title_full	Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
title_fullStr	Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
title_full_unstemmed	Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies
title_sort	does inflation targeting matter for output growth? evidence from industrial and emerging economies
publishDate	2012
url	http://hdl.handle.net/10986/4781
_version_	1764392735551258624

Does Inflation Targeting Matter for Output Growth? Evidence from Industrial and Emerging Economies

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