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Who chooses to inflation target?

Carlos Goncalves () and Alexandre Carvalho

Economics Letters, 2008, vol. 99, issue 2, 410-413

Abstract: In this article, we seek what are the factors behind a country's decision to move to Inflation Targeting. We find that high past inflation, low debt levels and the absence of a nominal exchange rate anchor increase the probability that a country will end up opting for it.

Date: 2008
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:410-413