ملخص
We analyse the success of inflation targeting (IT) in decreasing inflation volatility by investigating inflation variance before and after IT. We contribute to the literature by implementing Markov-Switching AutoRegressive Conditional Heteroscedastic methodology to model inflation volatility. After determining the unbiased conditional variances of inflation in each inflation-targeting country, we investigate structural breaks in inflation variability by both analysing individual countries and conducting a panel data analysis. All of these methods conclude that IT helps most of the countries to achieve lower inflation uncertainty (volatility). We also examine the country-specific factors that determine the effectiveness of inflation-targeting adoption.
اللغة الأصلية | English |
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الصفحات (من إلى) | 444-459 |
عدد الصفحات | 16 |
دورية | Australian Economic Review |
مستوى الصوت | 46 |
رقم الإصدار | 4 |
المعرِّفات الرقمية للأشياء | |
حالة النشر | Published - ديسمبر 2013 |
منشور خارجيًا | نعم |
ASJC Scopus subject areas
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