Document Type

Article

Publication Date

4-12-2020

Department

Agriculture & Tourism

Abstract

The main feature of inflation targeting (IT) framework is the public announcement by the central bank that it will keep inflation at a numerical inflation target. A large literature addresses preconditions that a country should satisfy before adopting IT. However, there is much debate about whether satisfying these preconditions are essential. This study addresses this debate. Empirical results indicate that the fulfillment of preconditions before IT adoption ensures effective implementation of IT in the short-run. However, countries that met all preconditions before IT adoption do not have an advantage over countries that didn’t meet all preconditions before IT adoption in the long-run.

DOI

10.5539/ijef.v12n5p51

First Page

51

Last Page

67

Publication Title

International Journal of Economics and Finance

Comments

This work is licensed under a Creative Commons Attribution 4.0 License.

Original citation:

Meerza, S.I.A., 2020. “Do Preconditions of Inflation Targeting Framework Matter?” International Journal of Economics and Finance, 12(5): 51-67. doi:10.5539/ijef.v12n5p51

Download

Included in

Business Commons

Share

COinS