Inflation targeting in low-income countries: Does IT work?

Michael Bleaney, Atsuyoshi Morozumi () and Zakari Mumuni

No 2020-01, Discussion Papers from University of Nottingham, CREDIT

Abstract: Previous research on inflation targeting (IT) has focused on high-income countries (HICs) and emerging market economies (EMEs). Only recently has enough data accumulated for the performance of IT in low-income countries (LICs) to be assessed. We show that IT has not so far been as effective in reducing inflation in LICs as in EMEs. Relatively weak institutions, a typical feature of LICs, help explain this result. Our interpretation is that poor institutions, leaving fiscal policy unconstrained, impair central banks’ ability to conduct monetary policy in a way consistent with IT.

Keywords: Inflation targeting; Low-income countries; Institutions (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.nottingham.ac.uk/credit/documents/papers/2020/20-01.pdf (application/pdf)

Related works:
Journal Article: Inflation targeting in low‐income countries: Does IT work? (2020)
Working Paper: Inflation targeting in low-income countries: Does IT work? (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:not:notcre:20/01

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, CREDIT School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().