Inflation targeting and product market deregulation

Laura Moretti ()

No 2012/01, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: I evaluate the effect of inflation targeting on inflation and how it interacts with product market deregulation during the disinflationary process in the 1990s. Using a sample of 21 OECD countries, I show that, after controlling for product market deregulation, the effect of inflation targeting is quantitatively important and statistically significant. Moreover, product market deregulation also matters in particular in countries that adopted an inflation targeting regime. I propose a New Keynesian Phillips curve with an explicit role for market deregulation to rationalize the empirical evidence.

Keywords: Inflation Targeting; Product Market Deregulation; Difference in Difference (search for similar items in EconPapers)
JEL-codes: E31 E58 E65 L51 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Inflation targeting and product market deregulation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:201201

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