Inflation Targeting and Inflation Uncertainty

Bedri Kamil Onur Taş*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

This article empirically investigates the impact of inflation targeting on inflation uncertainty. We implement PARCH and GARCH methodologies to model conditional variance of inflation. We also investigate the relationship between level and volatility of inflation to analyze the validity of the Friedman hypothesis for IT countries. We find that most of the inflation targeting countries have significantly lower inflation variances after inflation targeting. In most of the IT countries, the relationship is consistent with the Friedman hypothesis.

Original languageEnglish
Pages (from-to)283-297
Number of pages15
JournalScottish Journal of Political Economy
Volume59
Issue number3
DOIs
Publication statusPublished - Jul 2012
Externally publishedYes

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics

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