Economic Performance and Inflation Targeting in Developing Economies

Olfa Manai Daboussi

11 citations0/0 files storedJournal of World Economic Research

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Abstract

This paper investigates the effect of inflation targeting (IT) on inflation, output growth and interest rates. Based on panel data of 53 developing countries, of which 20 that have adopted IT by the end of 2007. In this study we use the differences-in-differences approach of Ball and Sheridan (2005) to analyze the relationship between IT and economic performance over the period 1980-2012. The results show that the empirical analysis confirms that the effect of inflation targeting in developing economies will contribute effectively to achieve economic performance.

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1993The role of macroeconomic factors in growth 1997Inflation Targeting: A New Framework for Monetary Policy?1999Inflation targeting: lessons from the international experience 1999Inflation Targeting: Lessons from the International Experience 2000Inflation Targeting for Emerging-Market Countries 2007Does Inflation Targeting Make a Difference?2003Does Inflation Targeting Matter?2006Inflation targeting in emerging economies: What do the data say?

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