Inflation targeting and the cyclicality of monetary policy

Thornton, John and Vasilakis, Chrysovalantis (2017) Inflation targeting and the cyclicality of monetary policy. Finance Research Letters, 20 (2). ISSN 1544-6123

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Abstract

We assess whether the adoption of inflation targeting (IT) frameworks has facilitated countercyclical monetary policies in a sample of 90 industrial and developing economies, 22 of which have adopted IT. Using propensity score matching methods, we show that the aver- age treatment effect of IT has a statistically significant and quantitatively quite large effect in facilitating a more countercyclical monetary policy in IT adopting countries.

Item Type:	Article
Uncontrolled Keywords:	inflation targeting,monetary policy cyclicality,treatment effect,propensity score matching
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Depositing User:	LivePure Connector
Date Deposited:	16 Sep 2019 07:30
Last Modified:	30 Jan 2024 02:37
URI:	https://ueaeprints.uea.ac.uk/id/eprint/72205
DOI:	10.1016/j.frl.2016.10.012

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