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Inflation targeting or exchange rate targeting: Which framework supports the goal of price stability in emerging market economies?
- Source :
-
PLoS ONE . 8/28/2018, Vol. 13 Issue 8, p1-21. 21p. - Publication Year :
- 2018
-
Abstract
- The paper investigates and compares the relationship between inflation and inflation uncertainty under inflation targeting and, alternatively, a conventional fixed exchange rate system, for a group of emerging countries. To do so we estimate GARCH in mean models and we find that there is a bi-directional relationship between inflation and inflation uncertainty under the two monetary regimes. It is also found that the fixed exchange rate regime has no impact on average inflation and inflation inertia, while inflation targeting has been successful at lowering both average inflation and inflation persistence. [ABSTRACT FROM AUTHOR]
- Subjects :
- *FOREIGN exchange rates
*PRICE inflation
*GARCH model
*MONETARY policy
*PRICES
Subjects
Details
- Language :
- English
- ISSN :
- 19326203
- Volume :
- 13
- Issue :
- 8
- Database :
- Academic Search Index
- Journal :
- PLoS ONE
- Publication Type :
- Academic Journal
- Accession number :
- 131452790
- Full Text :
- https://doi.org/10.1371/journal.pone.0201798