Economics at your fingertips  

Do monetary, fiscal and financial institutions really matter for inflation targeting in emerging market economies?

Seedwell Hove, Fulbert Tchana Tchana () and Albert Touna Mama

Research in International Business and Finance, 2017, vol. 39, issue PA, 128-149

Abstract: Most emerging market economies (EMEs) which have implemented inflation targeting have continued to miss inflation targets, even for countries with good institutions. This paper studies the importance of institutional quality such as central bank independence, fiscal discipline and financial sector development for the achievement of inflation targets in EMEs using a panel ordered logit model. It finds that the improvement in institutional quality reduces the probability of inflation target misses and that monetary policy is more effective in countries with good institutions. However, macroeconomic variables such as exchange rate gap, output gap and trade openness also explain inflation target outcomes.

Keywords: Inflation targeting; Institutions; Credibility (search for similar items in EconPapers)
JEL-codes: E52 G28 (search for similar items in EconPapers)
Date: 2017
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:
Working Paper: Do Monetary, Fiscal and Financial Institutions Really Matter for Inflation Targeting in Emerging Market Economies? (2011) Downloads
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:

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-01-10
Handle: RePEc:eee:riibaf:v:39:y:2017:i:pa:p:128-149