Economics at your fingertips  

Inflation targeting: Genuine effects or publication selection bias?

Hippolyte Balima (), Eric G. Kilama and René Tapsoba ()

European Economic Review, 2020, vol. 128, issue C

Abstract: This paper uses a meta-regression analysis (MRA) to evaluate the impact of publication selection bias as for the macroeconomic effects of inflation targeting (IT) – a popular approach to implementing monetary policy – documented in the existing literature. Using 8,059 point estimates from 113 studies, we show that a significant part of the documented positive effects of IT on inflation and, to some extent, output growth volatility, is in fact due to publication selection bias. In particular, results pointing to lower inflation volatility and higher real GDP growth tend to be favored by researchers, as well as those pointing to statistically significant macroeconomic effects. However, even after controlling for these two types of biases, we find IT to be correlated with lower inflation and higher real GDP growth. Differently, the evidence on the IT-inflation volatility relationship is found to be less clear.

Keywords: Inflation targeting; Meta-regression analysis (search for similar items in EconPapers)
JEL-codes: C83 E52 E58 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

DOI: 10.1016/j.euroecorev.2020.103520

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-10-21
Handle: RePEc:eee:eecrev:v:128:y:2020:i:c:s0014292120301513