Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/1099
Title: Keep your Word: Time-varying Inflation Targets and Inflation Targeting Performance
Authors: Taş, Bedri Kamil Onur
Demir, İshak
Keywords: countries
US
monetary-policy
persistence
expectations
Issue Date: Mar-2014
Publisher: Wiley-Blackwell
Source: Tas, B. K. O., & Demir, I. (2014). Keep your Word: Time?varying Inflation Targets and Inflation Targeting Performance. The Manchester School, 82(2), 160-182.
Abstract: This paper investigates the implicit inflation targets of inflation targeting (IT) central banks (CBs). The implicit (perceived) inflation targets of IT CBs derived from their actions (policy interest rates) are calculated before and after IT adoption. We conclude that after adoption of IT implicit targets become significantly lower. Other factors that cause CBs to change their implicit targets are inflation, exchange rate and trade balance. Finally, we find that CBs that do not follow their announced targets miss their inflation targets. The results indicate that IT CBs should follow their announced targets when setting policy interest rates.
URI: https://doi.org/10.1111/manc.12005
https://hdl.handle.net/20.500.11851/1099
ISSN: 1463-6786
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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