Inflation Targeting and the Crisis: An Empirical Assessment

de Carvalho Filho, Irineu

Inflation Targeting and the Crisis: An Empirical Assessment

MPRA Paper from University Library of Munich, Germany

Abstract: This paper appraises how countries with inflation targeting fared during the current crisis, with the goal of establishing the stylized facts that will guide and motivate future research. We find that relative to other countries, IT countries lowered nominal policy rates by more and this loosening translated into an even larger differential in real interest rates; were less likely to face deflation scares; and saw sharp real depreciations not associated with a greater perception of risk by markets. We also find some weak evidence that IT countries did better on unemployment rates and advanced IT countries have had relatively stronger industrial production performance. Finally, we find that advanced IT countries had higher GDP growth rates than their non-IT peers, but no such difference for emerging countries or the full sample.

Keywords: Inflation targeting; economic crisis; monetary policy (search for similar items in EconPapers)
JEL-codes: E00 (search for similar items in EconPapers)
Date: 2010-01-11
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 (27)

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Related works:
Working Paper: Inflation Targeting and the Crisis: An Empirical Assessment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:19960

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